Which activity would not be included in Cash Flows from Operating Activities?

Cash flows from operating activities typically include the cash effects of transactions that enter into the determination of net income. This encompasses various elements directly related to the company’s core operations, such as revenue from sales, expenses, and adjustments related to working capital accounts.

Changes in accrued liabilities, depreciation expense adjustments, and changes in merchandise inventory all fall under operating activities because they impact net income and are part of managing everyday operations.

On the other hand, a change in long-term investments involves cash flows related to investing activities rather than operating activities. These transactions typically reflect expenditures or sales of long-term assets, which are not directly tied to the core operating income of the business. As such, they are classified separately to provide a clear view of how cash is being generated or used outside of regular business operations. This distinction helps stakeholders understand the company's cash flow dynamics more comprehensively.