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

- Income Tax Paid (A): This is considered an operating activity as it relates to the day-to day operations of the business.
- Dividend Received (B): This is classified as an investing activity since it is income derived from investments.
- Loan Repaid (C): This is a financing activity because it involves the outflow of cash to repay borrowings.
- Shares issued against Machinery (D): This does not constitute a cash flow activity since it involves a non-cash transaction.