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

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Match List-I with List-II

List-I	List-II
(A) Cash from Operating Activities	(I) Dividends paid on equity and preference capital.
(B) Cash from Financing Activities	(II) Cash receipts from sale of goods and the rendering of services
(C) Cash from Investing Activities	(III) Bank balance
(D) Cash and cash equivalents	(IV) Cash receipt from disposal of fixed assets including intangibles.

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CUET Accountancy PYQs

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