Q. 1 DK Goel Cash Flow Statement Solutions Class 12 CBSE (2024-25)

Solution of question number 1 of Cash Flow Statement chapter 7 of DK Goel Class 12 CBSE (2024-25).

Identify the following transactions as belonging to (I) Operating, (ii) Investing, (iii) Financial Activities and (iv) Cash Equivalents:

1. Interest paid
2. Interest paid on long-terms loans by
   (a) Finance Company
   (b) Non-Finance Company
3. Interest received
4. Interest received on Investments by a bank
5. Interest received on investments by a manufacturing company.
6. Dividend received
7. Dividend received by a Mutual Fund Company
8. Purchase of Investments
9. Purchase of Investments by a finance company
10. Purchase of Investments by a non-finance company
11. Bank Balance
12. Short-term deposits in banks
13. Bank Overdraft
14. Marketable Securities

Solution:-

(I) Operating Activities : 2 (a), 4, 7,9

(ii) Investing Activities : 3, 5, 6, 8, 10

(iii) Financing Activities : 1, 2 (b), 13

(iv) Cash Equivalents : 11, 12, 14

Hint : Bank and Mutual Fund Company are finance companies.