Match List-I with List-II
| List-I Transactions | List-II Types of Activities | ||
|---|---|---|---|
| (A) | Sale of Machinery | (I) | Financing Activities |
| (B) | Bonus Issue | (II) | Operating Activities |
| (C) | Dividend Paid | (III) | Investing Activities |
| (D) | Rent Paid | (IV) | No Cash Flow |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
A cash flow statement sorts each receipt and payment by the activity it comes from; a transaction with no cash moving is left out of it.
(A) Sale of Machinery — this matches (III) Investing Activities. It is the disposal of a fixed asset, and the cash received is an investing inflow.
(B) Bonus Issue — this matches (IV) No Cash Flow. Bonus shares are issued to shareholders out of reserves; no cash comes in or goes out.
(C) Dividend Paid — this matches (I) Financing Activities. It is a payment to the owners who supply the capital.
(D) Rent Paid — this matches (II) Operating Activities. It is an expense of the firm’s main revenue-earning activity.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition): NCERT (2026-27 edition): |
