Practicing Success
Goodwill was of ₹80,000 on March 31st 2023 and was of ₹60,000 on March 31st 2022. How will you treat the above, while preparing cash flow statement for the year ended March 31, 2023? |
Add ₹20,000 in Cash from Operating Activities Substract ₹20,000 Cash from Operating Activities Inflow of ₹20,000 in Cash from Investing Activities Outflow of ₹20,000 Cash from Investing Activities |
Outflow of ₹20,000 Cash from Investing Activities |
The correct answer is Option (4) - Outflow of ₹20,000 Cash from Investing Activities. Goodwill is increased by ₹20000 (80000-60000). |