Match List – I with List – II.
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LIST I |
LIST II |
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A. Operating Activities |
I. Proceeds from issuance of Equity |
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B. Investing Activities |
II. Short term Investment |
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C. Financing Activities |
III. Employees benefits expenses |
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D. Cash and Cash equivalents |
IV. Proceeds from sale of patents |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-III, B-IV, C-I, D-II
(A) Operating Activities — this matches (III) Employees benefits expenses. Paying employees is part of the main revenue-earning activity.
(B) Investing Activities — this matches (IV) Proceeds from sale of patents. Patents are long-term (intangible) assets; selling them is investing.
(C) Financing Activities — this matches (I) Proceeds from issuance of Equity. Issuing shares changes the owners’ capital.
(D) Cash and Cash equivalents — this matches (II) Short term Investment. Short-term, highly liquid investments such as short-term deposits and marketable securities are cash equivalents.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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