Match List-I with List-II

List-I	List-II
(A) Operating Activities	(I) Current Investment
(B) Investing Activities	(II) Dividends paid on equity and preference capital
(C) Financing Activities	(III) Cash receipt from disposal of fixed assets including intangibles
(D) Cash equivalents	(IV) Cash receipts from royalties, fees, commissions and other revenues

Choose the correct answer from the options given below:

Operating Activities include principal revenue-producing activities and other activities that are not investing or financing. Cash receipts from royalties, fees, commissions and other revenues are part of normal business operations, generating revenue for the enterprise.

(A) → (IV)

Investing Activities involve acquisition and disposal of long-term assets and investments. Cash receipt from disposal of fixed assets including intangibles represents cash inflow from selling long-term assets, which is clearly an investing activity.

(B) → (III)

Financing Activities result in changes in size and composition of owner's capital and borrowings. Dividends paid on equity and preference capital represent distribution to owners, affecting the capital structure of the business.

(C) → (II)

Cash equivalents are short-term, highly liquid investments readily convertible to cash with insignificant risk of value changes. Current investments (typically maturing within 3 months) qualify as cash equivalents as they can be quickly converted to cash.

(D) → (I)

The correct matching is: (A) - (IV), (B) - (III), (C) - (II), (D) - (I)

Option 2 is correct.