Match List-I with List-IIList–IList–II(A) Cash Inflows & Operating Activities(I) Proceeds from issue of preference or equity shares(B) Cash Inflows & Financing Activities(II) Receipt from royalties, fees, commission and other revenues(C) Cash Inflows & Investing Activities(III) Payment of Taxes(D) Cash Outflows & Operating Activities(IV) Proceeds from disposal of MachineryChoose the correct answer from the options given below:
- A(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
- B(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's map each statement based on AS-3 (Cash Flow Statements):(A) Cash Inflows & Operating Activities corresponds to (II): Receipts from royalties, fees, and commissions form part of primary revenue-producing activities.(B) Cash Inflows & Financing Activities corresponds to (I): Proceeds from issuing equity or preference shares alter the capital structure size.(C) Cash Inflows & Investing Activities corresponds to (IV): Cash from selling non-current assets like machinery is an investing inflow.(D) Cash Outflows & Operating Activities corresponds to (III): Payment of income taxes is an operating cash outflow.Therefore, the correct matching is (A) - (II), (B) - (I), (C) - (IV), (D) - (III).