What does investing activities refer to in accounting?

Investing activities in accounting primarily refer to the purchase and sale of long-term assets, which is why selecting this option is correct. These activities are a crucial component of the cash flow statement, highlighting how a company allocates its resources to acquire assets that will benefit the business over an extended period. This typically includes transactions related to property, plant, and equipment, as well as investments in securities or other companies that are expected to provide future economic benefit.

The other options touch on different aspects of financial activity but do not accurately describe investing activities. For instance, the purchase of stocks and bonds is more aligned with financing or trading activities, depending on the context. Day-to-day operational expenses relate to the company's regular operating activities and are categorized under operating activities. Payments made to suppliers are also classified as operating activities, reflecting short-term financial commitments necessary for maintaining daily functions. Therefore, focusing on long-term asset transactions accurately captures the essence of investing activities in accounting.