Match List – I with List – II. LIST I LIST II A. Summaries of differe… | Accountancy Part B CUET question

Match List – I with List – II.

LIST I	LIST II
A. Summaries of different operational activity of different period	I. Cash flow statement
B. Identify the cash from operating, financing and investing activities	II. Ratio analysis
C. Identify the significant relationship between two items of Balance Sheet	III. Comparative statement
D. Summaries of different operational activity of one period	IV. Common size statement

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A-III, B-I, C-II, D-IV

Each tool of financial analysis has its own purpose.

A. Summaries of different operational activity of different period — this matches III. Comparative statement. It sets two or more periods side by side.

B. Identify the cash from operating, financing and investing activities — this matches I. Cash flow statement. AS-3 classifies cash flows into these three activities.

C. Identify the significant relationship between two items of Balance Sheet — this matches II. Ratio analysis. A ratio relates one item to another.

D. Summaries of different operational activity of one period — this matches IV. Common size statement. Each item of one statement is shown as a percentage of a common item.

NCERT (2026-27 edition):
Comparative Statements – “As stated earlier, these statements refer to the statement of profit and loss and the balance sheet prepared by providing columns for the figures for both the current year as well as for the previous year and for the changes during the year, both in absolute and relative terms. As a result, it is possible to find out not only the balances of accounts as on different dates and summaries of different operational activities of different periods, but also the extent of their increase or decrease between these dates.”

NCERT (2026-27 edition):
Classification of Activities for the Preparation of Cash Flow Statement – “You know that various activities of an enterprise result into cash flows (inflows or receipts and outflows or payments) which is the subject matter of a cash flow statement. As per AS-3, these activities are to be classified into three categories: (1) operating, (2) investing, and (3) financing activities so as to show separately the cash flows generated (or used) by (in) these activities. This helps the users of cash flow statement to assess the impact of these activities on the financial position of an enterprise and also on its cash and cash equivalents.”

NCERT (2026-27 edition):
Ratio Analysis – “… It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.”

NCERT (2026-27 edition):
Common Size Statements – “… These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item.”