What activity type in the statement of cash flows consists of transactions affecting the purchase and sale of long-term assets?

The correct choice pertains to investing activities, which are a key component of the statement of cash flows. This section captures all transactions that involve the acquisition and disposal of long-term assets, such as property, equipment, and investments. When a company purchases a building or sells a piece of machinery, these actions are reflected in the investing activities section because they impact the long-term financial health of the organization.

Investing activities also provide insights into the company's growth strategies and capital expenditures, as they show how much is being invested in assets that will generate revenue in future periods. This distinction is essential in understanding how a company is allocating its resources for long-term value creation.

Operating activities, in contrast, relate to the core business operations, including revenues and expenses from day-to-day activities. Financing activities involve transactions related to debt and equity, such as borrowing funds or issuing stock. Marketing activities do not appear in the statement of cash flows, as they typically relate to promotional strategies rather than financial transactions affecting cash flow.