Financial Statements

Cash Flow

Easy

List-I (Items of cash flow)	List-II (Type of activity)
(A) Purchase of tangible assets	(I) Operating activity
(B) Issue of shares	(II) Cash and cash equivalents
(C) Increase in current assets	(III) Investing activity
(D) Marketable securities	(IV) Financing activity

Match List-I with List-II

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

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

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

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

✅ Correct Option: 4

To understand the question, we need to know about cash flow activities. There are three main types:

Operating Activities: Day-to-day business operations.
Investing Activities: Buying or selling long-term assets.
Financing Activities: Raising money or paying back investors.

Now, let's match the items in List-I with their correct types in List-II.

(A) Purchase of tangible assets → This is an investment, so it matches with (III) Investing activity.

(B) Issue of shares → This is a way to raise money, so it matches with (IV) Financing activity.

(D) Marketable securities → These are short-term investments, which are considered cash equivalents, so it matches with (II) Cash and cash equivalents.

Putting it all together, we get:

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

Thus, the correct answer is option 4.

2025: 16 May Shift 1

Cash flow statement is part of financial statements as per The Companies Act 2013 and prepared in accordance with Accounting Standard_____.

2022: 8 Aug Shift 2

If a machinery is purchased, how will it be treated while preparing the cash flow statement as per AS-3 (Revised)?

2026: 11 May Shift 2

From the following information, calculate cash flows from financing activities:

	April 1,2025	March 31,2026
Long-term Loans	Rs. 2,00,000	Rs. 2,50,000

During the year, the company repaid a loan of Rs. 1,00,000.

2022: 20 July Shift 1

Arrange the following into correct sequence while computing cash flow from operating activies.

(a) Compute Net Profit before tax after making necessary adjustments.

(b) Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.

(d) Compute operating profit by making adjustment for working capital changes.

(e) Calculate cash generated/cash used from operating activities by deducting tax paid from operating profit.

Choose the correct answer from the options given below :

2023: 11 June Shift 3

Cave Ltd. made a profit of Rs. 1,50,000 after charging depreciation of Rs. 30,000 on assets and a transfer to general reserve of Rs. 30,000. The Goodwill amortised was Rs. 9,000 and gain on sale of machinery was Rs. 5,000. Operating profit before working capital changes will be :

2022: 23 Aug Shift 2

Which among the following are sources of cash inflow from Investing Activities ?

(A) Dividend Received from investment

(B) Cash Receipt from Disposal of shares

(D) Cash proceeds from issuing Shares and Debentures

Choose the correct answer from the options given below :

Match List-I with List-II

Solution

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