Final answer:
Cash outflows from investing activities are expenditures on long-term assets expected to bring future profits. The correct options that represent cash outflows from investing activities include the purchase of long-term investments, buildings, and land.
Step-by-step explanation:
When assessing which activities constitute cash outflows from investing activities, it’s important to understand the nature of these transactions. Investing activities typically involve the purchase of long-term assets that a company expects to generate profits in the future.
Common examples include the purchase of buildings, land, and long-term investments. These transactions require substantial amounts of cash, which will flow out of the business, hence they are considered cash outflows in investing activities.
It is important to differentiate these from other types of cash outflows that may fall under operating activities, like the payment of income taxes, or financing activities, such as the repayment of long-term debt.
These do not qualify as investing activity outflows because they either pertain to the company’s operational expenses or to the ways the firm finances its overall operations and capital structure.
In summary, the correct options that represent cash outflows from investing activities in the given list are: purchase of long-term investments, purchase of building, and purchase of land.