Question : How will goodwill written off be adjusted in cash flow statement?
Option 1: Added to the Net Profit Before Tax
Option 2: Subtracted the Net Profit before Tax
Option 3: Not recorded in the Cash Flow
Option 4: None of these
Correct Answer: Added to the Net Profit Before Tax
Solution : It should not be included in cash flow because it is a non-monetary item.
Hence the correct answer is option 1.