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Question : Identify the transations as belonging to (i) Operating activity (ii) Investing activity (iii) Financing activity (iv) Cash and cash Equivalent - 

(a) Cash received against revenue from service rendered

(b) Proceeds from issue from debenture

(c) Income tax paid on gain on sale of asset

(d) Mareketeble securities

Option 1: (a) Investing activity

(b) Operating activity

(c) Financing activity

(d) Cash and cash equivalent

Option 2: (a) Financing activity

(b) Cash and cash equivalent

(c) Investing activity

(d) Operating activity

Option 3: (a) Operating activity

(b) Financing activity

(c) Investing activity

(d) Cash and cash equivalent

Option 4: (a) Cash and cash equivalent

(b) Financing activity

(c) Operating activity

(d) Investing activity


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: (a) Operating activity

(b) Financing activity

(c) Investing activity

(d) Cash and cash equivalent


Solution : (a) Cash received against revenue from service rendered = Operating Activity

(b) Proceeds from issue from debenture = Financing activity

(c) Income tax paid on gain on sale of asset = Investing Activity

(d) Mareketeble securities = Cash and cash equivalent

Correct answer is option 3.

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