Match List - I with List - II.
| List - I | List - II |
|---|---|
| (A) Bank overdraft | (I) Non cash item |
| (B) Dividend received | (II) Financing activity |
| (C) Provision for doubtful debts | (III) Operating activity |
| (D) Cash received from sale of goods | (IV) Investing activity |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (II), (B) - (IV), (C) - (I), (D) - (III)
(A) Bank overdraft — this matches (II) Financing activity. An overdraft is a borrowing from the bank, and the book classifies it with financing activities.
(B) Dividend received — this matches (IV) Investing activity. For a non-financial company, dividend received on shares held as investment is an investing inflow.
(C) Provision for doubtful debts — this matches (I) Non cash item. A provision reduces profit without any cash going out, so it is added back to net profit.
(D) Cash received from sale of goods — this matches (III) Operating activity. Cash sales are the main revenue-earning activity.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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