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1 mark

In the above case study if amount of Goodwill is increasing in current year, then it will be classified in:

  1. A
    Operating Activity
  2. B
    Investing Activity
  3. C
    Financing Activity
  4. D
    Cash and Cash Equivalents

Solution & Step-by-step Explanation

An increase in goodwill indicates a purchase of goodwill (an intangible asset). Purchase of assets is considered an outflow under Investing Activities.

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In the above case study if amount of Goodwill is increasing in current year, then it will be classified in:
A
Operating Activity
B
Investing Activity
C
Financing Activity
D
Cash and Cash Equivalents

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Financial StatementsCash Flow

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