Arrange following in correct order.
(A) Cash and cash equivalents
(B) Investing activity
(C) Operating Activity
(D) Financing activity
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (C), (B), (D), (A)
A cash flow statement first shows the cash flows from the three activities, in a fixed order, and then reconciles their total with the cash balance.
(C) Operating activity comes first: the cash from the main revenue-producing activities of the business.
(B) Investing activity comes next: cash spent on, or received from, long-term assets and investments.
(D) Financing activity comes third: cash raised from, or repaid to, owners and lenders.
(A) Cash and cash equivalents come last: the net increase from the three heads is added to the opening balance to give the closing cash and cash equivalents.
NCERT (2026-27 edition):
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