Arrange the following items to be in order while making Cash Flow Statement as per AS.3(a) Income Tax paid(b) Purchase of Furniture(c) Goodwill written off(d) Debentures issued(e) Shares purchasedChoose the correct answer from the options given below:
- A(c), (a), (b), (e), (d)
- B(c), (b), (a), (d), (e)
- C(a), (b), (c), (d), (e)
- D(c), (a), (b), (d), (e)
Solution & Step-by-step Explanation
Following the AS-3 framework:Operating Activities: Goodwill written off (c) is added to net profit. Then, Income tax paid (a) is deducted at the end of operating activities.Investing Activities: Purchase of furniture (b) and Shares purchased (investments) (e) are recorded.Financing Activities: Issue of debentures (d).Order: (c), (a), (b), (e), (d).