Which of the following are true?

A. Operating activities involve income statement items

B. Financing activities involve cash flows resulting from changes in investments and long-term asset items

C. Investing activities involve cash flows resulting from changes in long-term liability and stockholders' equity items

D. Operating activities involve balance sheet items

The A and D are true statements.

Explanation:

Operating Activity: The operating activity is that activity which records any changes in the working capital or we can say increase or decrease in the currents assets and current liabilities, income statement expenses like - payment of labor, purchase of material, etc.

Investing Activity: The investing activity records all those transactions which are related to the purchase and sale of fixed assets.

Financing activity: It records those transactions which are for the long term liabilities i. e issue of shares, the redemption of debentures, payment of dividend, etc.

So, by going through these definitions, the following statements are true:

A. Operating activities involve income statement items

D. Operating activities involve balance sheet items

The B. tells about the investing activity whereas the C. tells about the financing activities. Therefore, these options are incorrect

Hence, The A and D are true statements.