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

Let's analyze each of the activities and match them with the correct category based on Cash Flow Activities:

• Income tax Paid (A): Income tax paid is considered an operating activity because it is directly related to the core operations of the business. Therefore, (A) matches with (I) Operating Activity.
• Dividend Received (B): Dividend received is considered an investing activity because it is related to the returns from investments. Therefore, (B) matches with (III) Investing Activity.
• Loan Repaid (C): Loan repayment is considered a financing activity because it relates to the capital structure of the company and its financial obligations. Therefore, (C) matches with (II) Financing Activity.
• Shares issued against Machinery (D): Issuing shares in exchange for machinery is a non-cash financing activity as it does not involve cash inflow or outflow. This is not considered a cash flow activity. Therefore, (D) matches with (IV) Not a Cash Flow Activity.

Thus, the correct answer is (A) : (A)-(I), (B)-(III), (C)-(II), (D)-(IV).