Which cash activities involve the sale or purchase of assets used to earn revenue over time?

Investing activities are specifically related to the sale or purchase of long-term assets that are used to generate revenue. These assets can include property, plant, equipment, and investments in other companies. When a company acquires these assets, it is making an investment that is expected to contribute to future earnings. Similarly, when a company sells these assets, it may be liquidating investments that are no longer needed or are being replaced by more productive assets.

This is a key distinction in cash flow statements, where investing activities show how funds are allocated for growth and expansion, as well as the cash generated from selling parts of the company's asset base. Understanding this category is critical for assessing a company's long-term strategic decisions regarding its asset management and overall investment strategy.

Other categories such as operating activities primarily involve the day-to-day revenue-generating activities, while financing activities deal with transactions related to obtaining or repaying capital. Capital activities are not typically recognized as a standard category on cash flow statements, further emphasizing why investing activities is the correct answer in this context.