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:

29 May Shift 2

C Ltd made a profit of Rs. 10,000 after charging depreciation of Rs. 2,000 on Assets, transfer to General Reserve Rs. 3,000, Written off Goodwill Rs. 700, Profit on sale of Asset Rs. 300, increase in Debtors Rs. 300, increase in creditors Rs. 600, increase in prepaid expenses Rs. 20 and decrease in outstanding expenses Rs. 200. What will be the cash from operating activities?

3 June Shift 1

Arrange the following in correct sequence of appearance in a cash flow statement

(A) Cash and cash equivalents at the end

(B) Cash flows from operating activities

(D) Cash flows from financing activities

Choose the correct answer from the options given below:

20 June Shift 2

Match List I with List II

LIST I	LIST II
A. Employee benefit expenses	I. Investing activity
B. Dividend received	II. Operating activity
C. Loan raised	III. Extraordinary item
D. Proceeds from earthquake disaster management	IV. Financing activity

Choose the correct answer from the options given below:

CUET Accountancy PYQs

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