Match List-I with List-II

List-I	List-II
(A) Operating activity	(I) Bank
(B) Investing activity	(II) Redemption of preference shares
(C) Financing activity	(III) Purchase of machinery
(D) Cash equivalents	(IV) Cash receipt from trade receivables.

Choose the correct answer from the options given below:

Operating Activity includes cash flows from principal revenue-generating activities. Cash receipt from trade receivables (IV) represents collection from customers, which is part of operating activities.

Investing Activity involves acquisition and disposal of long-term assets. Purchase of machinery (III) is a capital expenditure, falling under investing activities.

Financing Activity includes activities that alter the capital structure of the enterprise. Redemption of preference shares (II) reduces equity capital, making it a financing activity.

Cash Equivalents are short-term, highly liquid investments readily convertible to cash with insignificant risk of value changes. Bank (I) balances (typically bank deposits with maturity of 3 months or less) qualify as cash equivalents.

Correct Matching:

(A) → (IV)

(B) → (III)

(C) → (II)

(D) → (I)

This corresponds to Option 3.