Final answer:
The statement about the statement of cash flows is false; it reports actual cash transactions for a period, not projections, and is critical for understanding a company's liquidity.
Step-by-step explanation:
The statement made about the statement of cash flows is false. A statement of cash flows is a financial document that provides detailed information about a company's cash inflows and outflows over a specific period of time. It does not project the amount of cash at the end of the period, but rather reports on the actual cash transactions that have occurred.
The statement of cash flows is divided into three sections: cash from operating activities, cash from investing activities, and cash from financing activities. This statement is crucial for understanding a company's liquidity and overall financial health.