Final answer:
Loans made to other entities fall under the category of Investing Activities in the cash flow statement. This is because it represents the company investing its resources outside of its primary business operations.the right answer is B
Step-by-step explanation:
The cash flow category for loans made to other entities is B) Investing Activities. This is because when a company extends loans to another entity, it is essentially investing its resources with the expectation of earning interest and eventually receiving the principal back. Therefore, such transactions are recorded under investing activities in the statement of cash flows. These activities are related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Loans made to other entities do not fall under operating activities because these do not pertain to the primary business operations, nor under financing activities since those involve transactions related to equity and debt of the company itself.