Question

While preparing cash flow statement, which of the following transactions will affect the cash flow from investing activities?

Options

• Loss on issue of debentures written off from securities premium

• Goodwill purchased

• Building purchased by issue of debentures as consideration

• Issue of bonus shares

Answer 1

Goodwill purchased

Explanation:

Purchasing goodwill is the acquisition of an intangible asset and is part of investing activities. The other options involve financing or non-cash transactions, so they don’t affect cash flows from investing activities.