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    While preparing Cash Flow Statement. purchase of goodwill is treated as:
    Question

    While preparing Cash Flow Statement. purchase of goodwill is treated as:

    A.

    Operating activity

    B.

    Financing activity

    C.

    Investing activity

    D.

    Extraordinary item

    Correct option is C

    The purchase of goodwill is considered an investing activity in the cash flow statement because it involves the acquisition of an intangible asset.

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