Question

Match List-I with List-II

List-I (Items of cash flow)	List-II (Type of activity)
(A) Purchase of tangible assets	(I) Operating activity
(B) Issue of shares	(II) Cash and cash equivalents
(C) Increase in current assets	(III) Investing activity
(D) Marketable securities	(IV) Financing activity

Choose the correct answer from the options given below:

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

Answer 1

The Correct Option is D

Purchase of tangible assets is an operating activity, issue of shares is a financing activity, and marketable securities are classified under investing activities.
Hence, the correct answer is Option 4.