Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Goodwill amortized is ________________to the profit made during the year for calculating the cash flow from operating activities while preparing the cash flow statement of the company.
Options:
Added
Deducted
Not treated
None of these
Correct Answer:
Added
Explanation:
Non-cash items such as depreciation, goodwill written-off, provisions, deferred taxes, etc., which are to be added back.