Question

Match List – I with List – II:

Choose the correct answer from the options given below:

• A. (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
• B. (A)-(III), (B)-(I), (C)-(II), (D)-(IV)
• C. (A)-(III), (B)-(II), (C)-(I), (D)-(IV)
• D. (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Hint:

Operating activities relate to daily operations; investing activities involve asset purchases/sales; financing activities include borrowings and dividends; cash credit is part of cash/cash equivalents.

Answer 1

The Correct Option is A

Step 1: Categorize each activity
Purchase of Building represents a capital expenditure for fixed asset acquisition, thus categorized as an Investing activity (III).
Change in Inventory pertains to daily business operations, accordingly classified as an Operating activity (IV).
Cash Credit signifies short-term borrowing, impacting cash or cash equivalents, and is classified as a Financing activity (II).
Dividend Paid is a distribution to shareholders, classified as a Financing activity (I).
Step 2: Establish the correspondence
(A) corresponds to (III)
(B) corresponds to (IV)
(C) corresponds to (II)
(D) corresponds to (I)
Step 3: Final determination
Consequently, the accurate pairing is option (A).