Match List I with List II in context of cash flow statement.
| LIST I |
LIST II |
| A) Sale of fixed asset | I) Outflow in Operating activities |
| B) Purchase of goodwill | II) Inflow in Investing activities |
| C) Tax paid | III) Outflow in Investing activities |
| D) Dividend paid | IV) Outflow in Financing activities |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-II, B-III, C-I, D-IV
(A) Sale of fixed asset — this matches (II) Inflow in Investing activities. Cash received on disposing of a long-term asset is an investing inflow.
(B) Purchase of goodwill — this matches (III) Outflow in Investing activities. Goodwill is an intangible fixed asset, and cash paid to acquire fixed assets, including intangibles, is an investing outflow.
(C) Tax paid — this matches (I) Outflow in Operating activities. Income tax on operating profit is an operating outflow unless it can be identified with an investing or financing item.
(D) Dividend paid — this matches (IV) Outflow in Financing activities. Dividends are a return to the providers of capital, so paying them is a financing outflow.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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