Which activity is NOT classified under investing activities in the proprietary fund statement of cash flows?

In the proprietary fund statement of cash flows, investing activities generally include transactions related to the acquisition or sale of long-term assets and other investments that are not considered cash equivalents.

Capital outlay, which typically refers to expenditures for acquiring or improving fixed assets, aligns with this definition. This activity involves using cash to invest in long-term assets, which is categorized under investing activities because it represents a cash outflow related to capital investments, intended for generating long-term benefits.

Interest receipts do not fall under investing activities in proprietary fund accounting. These receipts relate to the return on investments and are generally classified as operating activities. Loans made to others, like capital outlays, are classified as investing activities because they involve extensions of credit intended for long-term investment purposes.

In summary, capital outlay is correctly identified as an investing activity because it directly pertains to long-term asset management and enhancement.