Cash Inflows from Investing Activities

B

All responses qualify as cash inflows from investing activities.

The correct answer is A. proceeds from selling investments in the debt securities of other entities, except cash equivalents.

Cash inflows from investing activities refer to the cash received by a company from its investment-related transactions. These activities involve the acquisition and disposal of long-term assets, including debt and equity securities, property, plant, and equipment, as well as any lending or collecting of loans.

Option A, "proceeds from selling investments in the debt securities of other entities, except cash equivalents," is the only choice that correctly identifies a cash inflow from investing activities. When a company sells its investments in debt securities of other entities (excluding cash equivalents), it generates cash inflow. Debt securities include bonds, notes, or other fixed-income instruments issued by other entities.

Option B states that "all responses are correct," but this is incorrect as not all the provided options represent cash inflows from investing activities.

Option C, "proceeds from collecting the principal amount of loans," does not represent a cash inflow from investing activities. It actually pertains to cash inflows from operating activities, as it involves the company's core business operations of lending money.

Option D, "proceeds from selling investments in the equity securities of other companies," represents a cash inflow from financing activities rather than investing activities. Selling equity securities of other companies, such as stocks or shares, is associated with financing activities, which involve transactions related to the company's capital structure and raising funds.

Therefore, the correct answer is A, as it specifically identifies a cash inflow from investing activities by mentioning the proceeds from selling investments in the debt securities of other entities, except cash equivalents.