Final answer:
The purchase of long-term investments is recorded in the investing activities section of the Statement of Cash Flows (SOCF) and reflects an outflow of cash for the purchase, or an inflow if the investments are sold.
Step-by-step explanation:
The inflow and outflow sections that would record transactions to buy long-term investments are found in the Statement of Cash Flows (SOCF), specifically within the investment activities section. This is where a business or individual would record the cash transactions related to the purchase and sale of financial investments like stocks and bonds, as well as capital expenditures on assets that are expected to provide benefits over a long period, such as real estate. The SOCF is divided into three main sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. The purchasing of long-term investments would fall under the investing activities category, showing an outflow of cash if these investments are purchased, or an inflow if they are sold.