Select the item of investing activities :

Purchase of furniture

The correct answer is option 3- Purchase of furniture.

As per AS-3, investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Investing activities relate to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc. Transactions related to long term investment are also investing activities. Separate disclosure of cash flows from investing activities is important because they represent the extent to which expenditures have been made for resources intended to generate future income and cash flows.

Issue of shares- financing activity

Revenue from operations- operating activity

Redemption of debentures- financing activity