Final answer:
Cash outflows from operating activities are payments related to a company's core business processes. Interest paid on debts can be an operating cash outflow, while the purchase of assets and payment on investments are usually part of investing and financing activities, respectively. For clarity in financial statements, it is essential to properly categorize cash flows.
Step-by-step explanation:
The question revolves around identifying which items are considered cash outflows from operating activities in a statement of cash flows. In a financial context, cash outflows from operating activities may include various payments made by a company that are related to its core business processes. Examples of cash outflows from operating activities could include interest paid on debt, but not the purchase of assets nor payment on investments, as these are related to investing and financing activities, respectively. It's important to segregate cash flows properly because it provides a clear picture of a company's operational efficiency and its ability to generate cash from its regular business activities.
For understanding cash outflows in an insurance company, referring to the provided figure, we can infer that money flows out through payments to customers in the form of claims and through various operating expenses. Similarly, investment income paid can be an outflow but relates to investment rather than operating activities. Interest paid certainly counts as an operating cash outflow when it's related to debt taken out to fund core operations. However, the purchase of a long-term asset or payment on investments would be recorded in the cash flows from investing activities.
The third component of the current account balance in international trade, known as income payments, typically reflects the flows of investment income, which is considered under investing activities, not operating. This means that while investment income paid would indeed be a cash outflow, it wouldn't be classified under operating activities in the statement of cash flows.