A data flow diagram (DFD) is a graphical representation that shows how data moves through an information system. It displays external entities, processes, and data stores. Processes represent actions performed on the data, data flows depict the movement of data between processes and stores, and external entities and data stores represent sources and destinations of data. DFDs use standard symbols and have rules for how the components can connect. They are useful for communicating how a system works and defining its boundaries.