Question

Match List-I with List-II

	LIST I		LIST II
(A)	Cash Equivalents	(I)	Interim Dividend paid
(B)	Financing Activities	(II)	Selling & Distribution expenses paid
(C)	Operating Activities	(III)	Marketable securities
(D)	Investing Activities	(IV)	Dividend received on Shares held as investment

Choose the correct answer from the options given below:

• A. A-IV, B-I, C-II, D-III
• B. A-III, BI, C-II, DIV
• C. A-III, B-IV, C-II, D-I
• D. A-III. B - IV, C-I. D-II

Answer 1

The Correct Option is C

The solution to match List-I with List-II involves understanding the typical categorization of financial activities according to accounting principles:

	LIST I		LIST II
(A)	Cash Equivalents	(I)	Interim Dividend paid
(B)	Financing Activities	(II)	Selling & Distribution expenses paid
(C)	Operating Activities	(III)	Marketable securities
(D)	Investing Activities	(IV)	Dividend received on Shares held as investment

• Cash Equivalents (A) are short-term, highly liquid investments. Marketable securities are considered a type of cash equivalent because they can quickly be converted to cash (Hence, A-III).
• Financing Activities (B) involve transactions that result in changes in the size and composition of the equity capital and borrowings. Dividend received on Shares held as investment is related to financing as it affects the equity and return on investment (Hence, B-IV).
• Operating Activities (C) involve the principal revenue-generating activities of the enterprise. Expenses for Selling & Distribution align with operating activities as they relate to the core business processes (Hence, C-II).
• Investing Activities (D) relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Interim Dividend paid corresponds to investing activities as it typically affects the cash outflow related to investments (Hence, D-I).

Thus, the correct matches are: A-III, B-IV, C-II, D-I.