Which of the following items is not considered while computing Cash Flow from Operating Activities:

Interest on debentures

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Loss on sale of fixed assets

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Purchase of goodwill for cash

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Gain on sale of investments

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Solution

The correct option is C Purchase of goodwill for cash
Increase in goodwill i.e. purchase of goodwill for cash is not considered while computing cash flow from operating activities.

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Similar questions

Sale of fixed assets is ___ while calculating cash flow from investing activities.

Under which head the following items of a non-financial company will be shown :

(i) Sales (ii) Sale of Scrap (iii) Dividend received (iv) Interest earned (v) Profit on sale of fixed asset and (vi) Profit on sale of investments.

From the following information, calculate Operating Profit before Working Capital Changes:

	₹
Net Profit before Tax and Extraordinary Items	4,47,000
Depreciation on Machinery	84,000
Interest on Borrowings	16,800
Goodwill Amortised	18,600
Loss on Sale of Furniture	18,000
Premium on Redemption of Preference Shares	6,000
Gain (Profit) on Sale of Investments	12,000
Interest and Dividend Received on Investments	27,600

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