Final answer:
The statement of cash flows is a financial statement that shows the cash inflows and outflows from a company's operating, investing, and financing activities during a specific period of time. It is prepared using the indirect method and includes adjustments for non-cash items and changes in working capital accounts. The statement of cash flows also includes the cash flows from investing activities and financing activities.
Correct option is C.
Step-by-step explanation:
The statement of cash flows is a financial statement that shows the cash inflows and outflows from a company's operating, investing, and financing activities during a specific period of time.
The statement of cash flows is prepared using the indirect method, which starts with net income and makes adjustments for non-cash items and changes in working capital accounts to arrive at cash flows from operating activities.
The statement of cash flows also includes the cash flows from investing activities, which include the purchase and sale of long-term assets, and the cash flows from financing activities, which include the issuance and retirement of debt and equity securities.