Match List-I with List-II.

Choose the correct answer from the options given below:

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

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

(A) Income Tax Paid → (I) Operating Activity.
Income tax paid is typically classified under Operating Activities. These activities involve the cash flows related to the core operations of a business, such as cash received from customers and cash paid to suppliers. Income tax is a part of regular operational costs.

(B) Dividend Received → (III) Investing Activity.
Dividend received is generally classified under Investing Activities because it represents cash inflows from investments (e.g., dividends received from investments in shares or securities). Even though dividends are part of a company's income, the receipt of dividends is tied to the company's investment activities, which is why it's categorized as an investing activity.

(C) Loan Repaid → (II) Financing Activity.
Loan repaid falls under Financing Activities. Financing activities include cash flows that relate to the company’s transactions with its owners (such as issuing or repurchasing stock) or creditors (such as borrowing money or repaying loans). The repayment of loans directly impacts the financing structure of the company, making it part of financing activities.

(D) Shares Issued Against Machinery → (IV) Not a Cash Flow Activity.
Shares issued against machinery is not a cash flow activity because it involves a non-cash transaction. In this case, the company issues shares in exchange for machinery instead of using cash. This transaction would be disclosed as a non-cash transaction in the financial statements, but it doesn't involve an actual cash flow.