Match List – I with List – II. List - I List - II (A) Operating Activ… | Accountancy Part B CUET question

Match List – I with List – II.

List - I	List - II
(A) Operating Activities	(I) Dividend Received
(B) Investing Activities	(II) Current Investment
(C) Financing Activities	(III) Payment to Suppliers
(D) Cash and Cash Equivalents	(IV) Interest on Debentures

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

(A) Operating Activities — this matches (III) Payment to Suppliers. Paying suppliers for goods and services is part of the main revenue-producing activity, so it is an operating cash outflow.

(B) Investing Activities — this matches (I) Dividend Received. For a non-financial company, dividend and interest received are returns on investments and are shown under investing activities.

(C) Financing Activities — this matches (IV) Interest on Debentures. Interest paid on borrowed funds such as debentures is a financing cash outflow.

(D) Cash and Cash Equivalents — this matches (II) Current Investment. Short-term, highly liquid investments that can readily be turned into cash are cash equivalents.

NCERT (2026-27 edition):
Cash from Operating Activities

Extract from the NCERT textbook

NCERT (2026-27 edition):
Treatment of Some Peculiar Items – “… In case of a non-financial enterprise, as per AS-3, it is considered more appropriate that payment of interest and dividends are classified as financing activities whereas receipt of interest and dividends are classified as investing activities.”

NCERT (2026-27 edition):
Cash and Cash Equivalents – “… As per AS-3, ‘Cash’ comprises cash in hand and demand deposits with banks, and ‘Cash equivalents’ means short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.”