While preparing Cash Flow Statement, purchase of goodwill is treated as: Option 1: Operating activity Option 2: Financing activity Option 3: Investing activity Option 4: Extraordinary item

The answer is 'Investing activity'. View full solution:

CUET Accountancy - While preparing Cash Flow Statement, purchase of goodwill is treated as: | PYQs + Solutions

CUET Accountancy

Financial Statements

Easy

Operating activity

Financing activity

Investing activity

Extraordinary item

✅ Correct Option: 3

Related questions:

4 June Shift 2

Arrange the following steps in the correct sequence while calculating the cash flow from operating activities:

(A) Add in profit deductions already made in the Statement of Profit and Loss on account of non-cash items

(B) Calculate Operating Profit before Working Capital changes

(D) Calculate Net Profit/Loss before Tax and Extraordinary Items

Choose the correct answer from the options given below:

20 Aug Shift 2

Following items are categorised under Operating Activities:

A. Purchase of Goodwill

B. Transfer to General Reserve

C. Issue of fresh shares

D. Gain on sale of machinery

Choose the correct answer from the options given below:

29 May Shift 2

A part of fixed Assets costing Rs. 2,00,000 (Book value Rs. 1,50,000) was sold at a gain of Rs. 10,000. How it will affect the cash flow statement?