Question : 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
Answer (1)
8th Jan, 2024
Correct Answer: Investing activity
Solution : Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Purchase of intangible assets is an investing activity (outflow of cash).
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