Match List - I with List - II. List - I List - II (A) Operating Activ…

The correct answer is Option (1) → (A)-(III), (B)-(II), (C)-(I), (D)-(IV)

For a non-financial company, AS-3 classifies the items as follows:

(A) Operating Activities — this matches (III) Cash received from debtors. Receipts from customers (trade receivables) come from the main revenue-producing activity.

(B) Investing Activities — this matches (II) Interest received. Interest and dividends received by a non-financial enterprise are investing inflows.

(C) Financing Activities — this matches (I) Dividend paid. Dividends paid are a return to the providers of capital.

(D) Cash and Cash Equivalents — this matches (IV) Bank balance. Cash includes cash in hand and demand deposits with banks.