Match List – I with List – II. List - I List - II (A) Cash from Opera…

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

A cash flow statement sorts every cash receipt and payment by the activity that caused it: the main business (operating), long-term assets and investments (investing), and the firm’s own long-term funds (financing). Cash equivalents are the near-cash balances whose change the statement explains.

(A) Cash from Operating Activities — this matches (II) Cash receipts from sale of goods and the rendering of services. Selling goods and services is the main revenue-producing activity, so its receipts are operating cash inflows.

(B) Cash from Financing Activities — this matches (I) Dividends paid on equity and preference capital. Dividends are a return paid to the providers of capital, so they go out under financing.

(C) Cash from Investing Activities — this matches (IV) Cash receipt from disposal of fixed assets including intangibles. Buying and selling long-term assets is investing activity.

(D) Cash and Cash Equivalents — this matches (III) Bank balance. Cash includes cash in hand and demand deposits with banks, so a bank balance is part of cash itself.