What is the primary purpose of a company's statement of cash flows?

A) to provide information about the company's operations
B) to provide information about the company's dividend policy
C) to provide information about the company's financing and investing activities
D) to provide information about the company's cash receipts and cash payments during the period

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, broken down into operating, investing, and financing activities.

Financing Activities

Transactions and events where cash is obtained from or repaid to investors and creditors excluding suppliers, which affect a company's equity or borrowings.

Cash Payments

Outflows of cash to settle obligations or purchase goods and services, as documented in the cash flow statement.