Match List-I with List-II

List-I	List-II
(A) Cash Outflows from financing activities	(I) Redemption of debentures
(B) Cash Inflows from operating activities	(II) Current Investment
(C) Cash and cash equivalents	(III) Cash from royalties, fees, commissions and other revenues
(D) Cash Inflows from investing activities	(IV) Cash receipt from disposal of fixed assets including intangibles

Choose the correct answer from the options given below:

In a Cash Flow Statement, activities are classified into three categories: Operating, Investing, and Financing activities.

(A) Cash Outflows from financing activities → (I) Redemption of debentures

Financing activities involve changes in equity and borrowings. Redemption (repayment) of debentures represents cash paid to redeem borrowed funds, making it a cash outflow from financing activities.

(B) Cash Inflows from operating activities → (III) Cash from royalties, fees, commissions and other revenues

Operating activities are the principal revenue-producing activities of the enterprise. Cash received from royalties, fees, commissions and other revenues forms part of regular business operations and represents inflows from operating activities.

(C) Cash and cash equivalents → (II) Current Investment

Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash. Current investments (typically held for less than 3 months) qualify as cash equivalents under AS-3 (Cash Flow Statements).

(D) Cash Inflows from investing activities → (IV) Cash receipt from disposal of fixed assets including intangibles

Investing activities involve acquisition and disposal of long-term assets. When fixed assets (tangible or intangible) are sold, the cash received represents an inflow from investing activities.

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

Answer: Option 2