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Question
Match the transactions given in column - II with their correct category given in Column - I for the purpose of preparation of ‘Cash Flow Statement.’
| Column - I | Column - II | ||
| (a) | Investing Activity | (i) | Interest paid |
| (b) | Financing Activity | (ii) | Purchase of Goodwill |
| (c) | Operating Activity | (iii) | Cash receipts from sale of goods |
Options
(a) - (iii), (b) - (i), (c) - (ii)
(a) - (ii), (b) - (i), (c) - (iii)
(a) - (i), (b) - (iii), (c) - (ii)
(a) - (ii), (b) - (i), (c) - (iii)
MCQ
Match the Columns
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Solution
(a) - (ii), (b) - (i), (c) - (iii)
Explanation:
| Column - I | Column - II | ||
| (a) | Investing Activity | (ii) | Purchase of Goodwill |
| (b) | Financing Activity | (i) | Interest paid |
| (c) | Operating Activity | (iii) | Cash receipts from sale of goods |
Cash receipts from the sale of goods and services are an operating activity, the purchase of fixed assets is an investing activity, and interest paid on debentures is a financing activity.
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