Match List – I with List – II.

Choose the correct answer from the options given below : 

(A)-(III), (B)-(II), (C)-(I), (D)-(IV)

The correct answer is Option (2) → (A)-(III), (B)-(II), (C)-(I), (D)-(IV)

(A) Sale of Investment - Investing Activity.- This is typically classified as a cash flow from investing activities. It represents cash received from selling investments.

(B) Depreciation written off - Added to calculate Operating Activities.- Depreciation is a non-cash expense and is added back to the operating profit to calculate cash flows from operating activities. Therefore, it is associated with operating activities.

(C) Repayment of Long-term borrowings- Financing Activity.- Repayment of long-term borrowings is usually considered a cash outflow from financing activities. It represents the cash used to pay back long-term debts.

(D) Increase in Current Asset - Deducted from Operating Profit before working capital changes.- An increase in current assets uses cash, and it is deducted from operating profit before working capital changes to calculate cash flows from operating activities.