Final answer:
Cash flows related to borrowing and repaying a 90-day bank loan are classified as financing activities, which are part of the choices a firm makes to access financial capital, alongside issuing bonds and stocks. The correct option is c. financing activities
Step-by-step explanation:
Cash flows from borrowing and paying off a 90-day bank loan are classified as financing activities. When a firm decides to access financial capital, it has different avenues such as banking loans, issuing bonds, or selling stock.
Borrowing from banks or issuing bonds implies a commitment to scheduled interest payments, regardless of the firm's income situation, and is a way for firms to maintain control over their operations without being subject to shareholders.
On the other hand, selling stock involves transferring a portion of company ownership to the public, entailing responsibilities towards a board of directors and shareholders. The correct option is c. financing activities