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: Understand each activity
Purchase of Building is a capital expenditure related to acquiring fixed assets, thus classified as an Investing activity (III).
Change in Inventory relates to daily business operations, hence classified as an Operating activity (IV).
Cash Credit is a short-term borrowing, reflecting cash or cash equivalents, classified as Financing activity (II).
Dividend Paid is a return to shareholders, classified as a Financing activity (I).
Step 2: Match accordingly
(A) matches (III)
(B) matches (IV)
(C) matches (II)
(D) matches (I)
Step 3: Conclusion
Therefore, the correct matching is option (A).