Out of the following which one is not cash outflows from operating activities?

Dividends paid on equity and preference capital.

Correct answer: Option (4) → Dividends paid on equity and preference capital.

Concept: Classification of activities under AS-3 – operating versus financing activities, from Cash Flow Statement.

Cash payments to suppliers for goods and services, payments to and on behalf of employees, and payments to an insurance enterprise for premiums and claims are all cash OUTFLOWS from operating activities. Dividends paid on equity and preference capital are a FINANCING activity outflow, since they relate to the company’s owners’ funds. As the question asks which is NOT an operating outflow, Option (4) is correct.