Choice "C" is correct. Cash contributions restricted by the donor for long-term purposes must be reported as a cash inflow in the financing activities section of the statement of cash flows, segregated from other financing activities. Choice "a" is incorrect. Cash flows from operations would include cash flows from contributions, program income and agency transactions. Cash flows from operations might also include receipts designated by the entity's governing body for use for long-lived assets. Donor restricted receipts to be used for long-lived assets, however, are classfied as financing actiivities.Choice "b" is incorrect. Investing activities typically result from the purchase of long-lived assets or from sales of assets (e.g. equity securities) restricted for the acquisition of long-lived asset. Donor restricted cash receipts to be used for long-lived assets, however, are classified as financing activities.Choice "d" is incorrect. Cash contributions restricted by the donor for long-term purposes must be reported as cash inflows in financing actitivies. It would be inappropriate to classify a cash contribution as a non-cash transaction.