Which of the following is not an investing activity in the cash flow statement?

Royalty received by the company

The correct answer is option 4- Royalty received by the company.

* Royalty received by the company- This is an operating activity.
Operating activities are the activities that constitute the primary or main activities of an enterprise. For example, for a company manufacturing garments, operating activities are procurement of raw material, incurrence of manufacturing expenses, sale of garments, etc. These are the principal revenue-generating activities (or the main activities) of the enterprise and these activities are not investing or financing activities. Cash Inflows from operating activities are cash receipts from sale of goods and the rendering of services, cash receipts from royalties, fees, commissions, and other revenues

* All other options are investing activity as all include the purchase and sale of long-term assets. 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.