Which of the following is/ are not included in investing activity while preparing the cash flow statement?

Depreciation of fixed assets

The correct answer is option 3- Depreciation of fixed assets.

"Depreciation of fixed assets" is not included in investing activities when preparing the cash flow statement. Depreciation is a non-cash expense that is accounted for in the operating activities section of the cash flow statement.

In case of a non-financial enterprise, as per AS-3, payment of interest and dividends are classified as financing activities whereas receipt of interest and dividends are classified as investing activities.