Which of the following transactions is associated with investing activities?

The correct answer is the sale of fixed assets, which falls under investing activities in the cash flow statement. Investing activities involve transactions related to the purchase and sale of long-term assets which are intended to generate future economic benefits for the company. When a company sells fixed assets, such as property, plant, or equipment, it is effectively generating cash from resources that have contributed to its operational capabilities.

In financial accounting, investing activities include both the acquisition and disposal of physical assets, as well as investments in other companies. This categorization helps users of financial statements understand how much cash is being generated or used in the acquisition and sale of these assets, which is critical for assessing the company’s future growth potential.

The other options represent activities classified in different categories: issuing preferred stock pertains to financing activities, as it involves raising capital from investors; repaying long-term debt is also a financing activity, since it deals with the repayment of borrowed funds; and collecting accounts receivable falls under operating activities, as it relates to cash flows from the company’s core operations and day-to-day business activities.