Match List-I with List-II:List-I (Items of cash flow)(A) Purchase of tangible assets(B) Issue of shares(C) Increase in current assets(D) Marketable securitiesList-II (Type of activity)(I) Operating activity(II) Cash and cash equivalents(III) Investing activity(IV) Financing activityChoose the correct answer from the options given below:
- A(A) - (I), (B) - (III), (C) - (III), (D) - (IV)
- B(A) - (III), (B) - (III), (C) - (II), (D) - (IV)
- C(A) - (III), (B) - (IV), (C) - (II), (D) - (I)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's categorize each item under AS-3 (Revised) guidelines:Purchase of tangible assets (A): Investing activity (III)Issue of shares (B): Financing activity (IV)Increase in current assets (C): Adjusted during the computation of Operating activity (I)Marketable securities (D): Part of Cash and cash equivalents (II)Matching layout gives: (A) - (III), (B) - (IV), (C) - (I), (D) - (II).