1 :- Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:
(a) Cash Sale of Goods
(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods
(d) Cash Paid against Services Taken
(e) Patents Purchased
(f) Marketable Securities
(g) Bank Overdraft
(h) Proceeds from Issue of Debentures
(i) Purchase of Shares
(j) Repayment of Long-term Loan
(k) Commission Received
(L) Redemption of Debentures
(m) Interest on Debentures
(n) Interest on Investments
(o) Income Tax Paid
(p) Income Tax paid on Gain (Profit) on Sale of Asset
(q) Cash Received from Debtors
(r) Cash Paid to Creditors.
Solution :-
(a) Cash Sales of Goods is an Operating Activity.
(b) Cash received aginst revenue from Services rendered is an Operating Activity.
(c) Cash Purchase of Goods is an Operating Activity.
(d) Cash Paid against Services Taken is an Operating Activity.
(e) Patents Purchased is an Investing Activity.
(f) Marketable Securities is Cash and Cash Equivalents.
(g) Bank Overdraft is a Financing Activity.
(h) Proceeds from Issue of Debentures is a Financing Activity.
(i) Purchase of Shares is an Investing Activity.
(j) Repayment of Long-term Loan is a Financing Activity.
(k) Commission Received is an Operating Activity.
(l) Redemption of Debentures is a Financing Activity.
(m) Interest on Debentures is a Financing Activity.
(n) Interest on Investments is an Investing Activity.
(o) Income Tax Paid is an Operating Activity.
(p) Income Tax paid on Gain (Profit) on Sale of Asset is an Investing Activity.
(q) Cash Received from Debtors is an Operating Activity.
(r) Cash Paid to Creditors is an Operating Activity.