Arrange following in correct order

(A) Cash and cash equivalents

(B) Investing activity

(C) Operating Activity

(D) Financing activity

Choose the correct answer from the options given below:

The Cash Flow Statement follows a standard format as per AS-3 (Cash Flow Statements). The components must be presented in this specific sequence:

1. Cash flows from Operating Activities → (C)

These are the principal revenue-generating activities of the enterprise.

2. Cash flows from Investing Activities → (B)

These relate to acquisition and disposal of long-term assets and other investments.

3. Cash flows from Financing Activities → (D)

These are activities that result in changes in the size and composition of owners' capital and borrowings.

4. Cash and Cash Equivalents → (A)

This appears at the end, showing:

• Net increase/decrease in cash and cash equivalents (sum of above three activities)
• Opening balance of cash and cash equivalents
• Closing balance of cash and cash equivalents

The sequence (C), (B), (D), (A) represents the standard presentation format where operating activities are shown first (being the primary activities), followed by investing and financing activities, and finally reconciling to the cash and cash equivalents balance.

Correct Answer: Option 4: (C), (B), (D), (A)