Question : Under which type of activity will you classify 'Proceeds from Sale of Goodwill while preparing a Cash Flow Statement?
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalents
Answer (1)
20th Jan, 2024
Correct Answer: Investing activities
Solution : Answer = Investing activities
Proceeds from the sale of goodwill would be classified under investing activities when preparing the Cash Flow Statement. This is because the sale of goodwill represents a disposal of a long-term asset, which falls under the category of investing activities reflecting changes in the company's investment portfolio.
Hence, the correct option is 2.
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