The statement of cash flows

A) is prepared instead of an income statement under generally accepted accounting principles.
B) is used to assess an entity's ability to pay dividends and meet obligations.
C) is prepared from comparative income statements.
D) reflects earnings per share figures on a cash basis and on an accrual basis in the body of the statement.

Statement of Cash Flows

A financial report that shows how changes in balance sheet and income accounts affected cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Dividends

Disbursements by a company to its stockholders, often as a profit-sharing mechanism.

Obligations

Legal or financial duties that one party is bound to perform for another, such as the repayment of a loan.