Investing activity is the sale of a good or service is classified in the statement of cash flows. In this area, the purchase of long-term assets is documented as a cash use.
If management is investing in the company's long-term health, negative cash flow from investing operations may not be a bad indicator.
Purchasing physical assets, making securities investments, and selling securities or assets are all examples of investing activity.The sale of real estate is similarly recognized as a financial source.
Thus, option A is correct.
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