Accounting · Cash Flow Statement
Match the objectives/features of a Cash Flow Statement in List I with their corresponding explanations in List II: List I (Objectives / Features) A. Helps in assessing liquidity position B. Explains reasons for change in cash balance C. Prepared under Operating, Investing and Financing heads D. Shows only cash and cash equivalents transactions List II (Explanation) I. Classifies cash flows into three major activities II. Focuses only on actual cash movements III. Identifies causes of increase or decrease in cash IV. Evaluates ability to meet short-term obligations
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A-II, B-III, C-I, D-IV
- 2A-III, B-IV, C-II, D-I
- 3A-IV, B-I, C-III, D-II
- 4A-IV, B-III, C-I, D-II✓
Correct answer
A-IV, B-III, C-I, D-II
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