Answer (C) is correct . Investing activities are defined to include the lending of money and the collecting of those loans. They also include the acquisition, sale, or other disposal of securities that are not cash equivalents and of productive assets that are expected to generate revenue over a long period of time. However, interest payments to creditors are cash flows from operating activities.
Answer (A) is incorrect because The purchase or sale of long-lived equipment or intangibles is an investing activity. Cash flows from the purchase, sale, or maturities of available- for-sale and held-to-maturity of securities are also considered to be from investing activities.
Answer (B) is incorrect because The purchase or sale of long-lived equipment or intangibles is an investing activity. Cash flows from the purchase, sale, or maturities of available- for-sale and held-to-maturity of securities are also considered to be from investing activities.
Answer (D) is incorrect because The purchase or sale of long-lived equipment or intangibles is an investing activity. Cash flows from the purchase, sale, or maturities of available- for-sale and held-to-maturity of securities are also considered to be from investing activities.
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