Repayment of long-term loans is categorized as a financing activity. Financing activities are transactions or events that involve obtaining or repaying funds to finance the company's operations or investments. These activities primarily involve the company's owners, creditors, and investors.

Financing activities include activities such as issuing and repurchasing equity shares, borrowing and repaying long-term loans, and paying dividends to shareholders. These activities directly affect the company's capital structure and result in changes in its liabilities or equity.

Here is a detailed explanation of why the repayment of long-term loans falls under the category of financing activities:

1. Financing Activities Definition:
- Financing activities involve obtaining funds from external sources and repaying those funds.

2. Nature of Long-Term Loans:
- Long-term loans are typically borrowed from banks or financial institutions for a period exceeding one year.
- These loans are used to finance large-scale investments, such as purchasing fixed assets or funding long-term projects.

3. Repayment of Long-Term Loans:
- When a company repays its long-term loans, it is reducing its long-term debt obligations.
- The repayment may include both principal and interest payments.
- The funds used for repayment may come from cash generated from operations or from raising additional debt or equity.

4. Impact on Capital Structure:
- The repayment of long-term loans reduces the company's liabilities, specifically its long-term debt.
- As a result, the company's leverage decreases, which may improve its financial position and creditworthiness.
- This reduction in liabilities affects the company's capital structure and financial stability.

5. Presentation in Cash Flow Statement:
- The repayment of long-term loans is reported as a cash outflow under the financing activities section of the cash flow statement.
- This section summarizes the cash flows related to the company's financing activities, including borrowings and repayments.

In conclusion, the repayment of long-term loans is classified as a financing activity because it involves the reduction of long-term debt obligations and affects the company's capital structure. This activity is presented as a cash outflow in the financing activities section of the cash flow statement.