Question

Match List-I with List-II.

List-I	List-II
(A) Income tax Paid	(I) Operating Activity
(B) Dividend Received	(II) Financing Activity
(C) Loan Repaid	(III) Investing Activity
(D) Shares issued against Machinery	(IV) Not a Cash flow Activity

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

Answer 1

The Correct Option is A

Matching activities to their corresponding Cash Flow Categories:

• Income tax Paid (A): Classified as an operating activity due to its direct link to core business operations. Thus, (A) corresponds to (I) Operating Activity.
• Dividend Received (B): Classified as an investing activity as it represents returns from investments. Therefore, (B) matches with (III) Investing Activity.
• Loan Repaid (C): Classified as a financing activity concerning the company's capital structure and financial obligations. Accordingly, (C) corresponds to (II) Financing Activity.
• Shares issued against Machinery (D): This is a non-cash financing activity, as no cash is exchanged. Consequently, it is not classified as a cash flow activity. Thus, (D) matches with (IV) Not a Cash Flow Activity.

The finalized pairings are: (A) : (A)-(I), (B)-(III), (C)-(II), (D)-(IV).