Match List-I with List-II
| List-I | List-II | ||
| (A) | Receipt from royalties, fees, commission and other revenue | (I) | Investing Activity |
| (B) | Receipt from Interest and dividends | (II) | Operating Activity |
| (C) | Proceeds from issue of preference or equity shares | (III) | Cash and Cash equivalent |
| (D) | Current Investment | (IV) | Financing Activity |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (II), (B) - (I), (C) - (IV), (D) - (III)
A cash flow statement sorts every receipt and payment by the activity it comes from: operating, investing or financing.
(A) Receipt from royalties, fees, commission and other revenue — this matches (II) Operating Activity. They come from the main revenue-earning activities of the business.
(B) Receipt from Interest and dividends — this matches (I) Investing Activity. For a non-financial enterprise, interest and dividends received are a return on its investments.
(C) Proceeds from issue of preference or equity shares — this matches (IV) Financing Activity. They change the owners’ capital of the business.
(D) Current Investment — this matches (III) Cash and Cash equivalent. A short-term, highly liquid investment that can readily be turned into cash is treated as a cash equivalent.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition): NCERT (2026-27 edition): |
