Choice "B" is correct. Loans to other entities and the consequent collection of the loans are reflected in the investing activity section of the cash flow statement.
Choice "c" is incorrect. Notes payable fall under financing activities in the statement of cash flows.
Choice "a" is incorrect. Accounts receivable collections fall under operating activities in the statement of cash flows.
Choice "d" is incorrect. Collecting a tax refund will fall under operating activities in the statement of cash flows.
