Which of the following is a characteristic of a cash flow statement?

The correct answer highlights that a cash flow statement reflects operational, investing, and financing cash flows. This statement is essential for assessing the cash generated and used during a specific period in a business. By encompassing these three activities, the cash flow statement provides a comprehensive view of how cash enters and leaves the company, enabling stakeholders to understand the company's liquidity and overall financial health.

Operational cash flows include the cash generated from the core business operations, showcasing the company's ability to generate cash from its day-to-day activities. Investing cash flows illustrate the cash spent on or received from investments in long-term assets, indicating how much the company is investing in its future growth. Financing cash flows represent the cash transactions with the company's owners and creditors, including issuing or repaying debt and equity financing. This holistic view provided by the cash flow statement is crucial for making informed financial decisions and understanding the company’s cash management.