Match List I with List II in the context of the cash flow statement LIST I LIST II A Sale of fixed a...........

Accountancy (CUET) Cash Flow Statement

Match List I with List II in the context of the cash flow statement.

LIST I	LIST II
A. Sale of fixed asset	I. Outflow in operating activities
B. Purchase of Goodwill	II. Inflow in Investing Activities
C. Tax Paid	III. Outflow in Investing Activities
D. Dividend Paid	IV. Outflow in Financing Activities

Choose the correct answer from the options given below:

This questions was previously asked in

CUET ACCOUNTANCY Previous Year Paper (2022)

A - II, B - I, C - IV, D - III

A - II, B - III, C - I, D - IV

A - II, B - I, C - III, D - IV

A - III, B - II, C - IV, D - I

To correctly match the items in the context of a cash flow statement, we analyze each option based on standard cash flow classification:

Sale of fixed asset → This is an inflow in investing activities because selling a fixed asset (like machinery or land) generates cash.
- Correct Match: A - II (Inflow in Investing Activities)
Purchase of Goodwill → Goodwill is an intangible asset, and its purchase is considered an investment outflow.
- Correct Match: B - III (Outflow in Investing Activities)
Tax Paid → Tax paid is generally considered an operating activity in most cash flow statements.
- Correct Match: C - I (Outflow in Operating Activities)
Dividend Paid → Paying dividends is classified as a financing activity since it relates to how a company distributes profits to shareholders.
- Correct Match: D - IV (Outflow in Financing Activities)