Match List - I with List - II.List - I ||| List - II(A) Bank overdraft ||| (I) Non cash item(B) Dividend received ||| (II) Financing activity(C) Provision for doubtful debts ||| (III) Operating activity(D) Cash received from sale of goods ||| (IV) Investing activityChoose the correct answer from the options given below :
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (II), (B) - (IV), (C) - (I), (D) - (III)
- C(A) - (III), (B) - (II), (C) - (I), (D) - (IV)
- D(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
Solution & Step-by-step Explanation
(A) Bank overdraft is considered a short-term borrowing and is classified as a Financing Activity (II).(B) Dividend received is a return on investment, so it is an Investing Activity (IV).(C) Provision for doubtful debts does not involve an actual outflow of cash, so it is a Non-cash item (I).(D) Cash received from the sale of goods is the principal revenue generation, making it an Operating Activity (III).Correct match: A-II, B-IV, C-I, D-III.