Final answer:
The Statement of Cash Flows is a financial document resembling a video that shows the company's cash inflow and outflow over a period, distinguishing between operating, investing, and financing activities.
Step-by-step explanation:
The Statement of Cash Flows is an essential financial statement used in accounting to provide a detailed analysis of the changes in a company's cash and cash equivalents during a period. Unlike a balance sheet, which is a snapshot of a company's financial condition at a specific point in time, the Statement of Cash Flows is more like a video that records the flow of cash in and out of the business over that period. It helps understand how the company generates and spends its cash, categorizing cash flows into three activities: operating, investing, and financing.