What transactions are reflected in the cash flow from investing section of a cash flow statement?

The correct choice focuses on transactions involving the purchase and sale of physical and financial investments, which are essential components of the cash flow from investing section of a cash flow statement. This section specifically captures cash flows related to long-term assets that a company acquires or disposes of, emphasizing the importance of capital expenditures and investments.

When a company purchases equipment or property, it represents a cash outflow in investing activities because it is an expenditure on assets that contribute to the company’s operations over multiple periods. Conversely, when a company sells assets like equipment, real estate, or investment securities, it generates cash inflow; this activity also belongs in this section as it reflects the cash impact of entering and exiting investment positions.

The other choices do not accurately represent the investing activities within the cash flow statement. Cash received from customers relates to operating activities, operating expenses incurred affect the operating section as well, and borrowing or repaying loans pertains to financing activities. Hence, these transactions do not get reported in the investing section.