Question Details

Which of the following changes in retained earnings 



1.	Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows?
1.	Declaration and payment of a cash dividend during the period.
2.	Net income for the period.
a.	1
b.	2
c.	Neither 1 nor 2.
d.	Both 1 and 2.

	2.	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.

	3.	In preparing the statement of cash flows, determining the net increase or decrease in cash requires the use of
a.	the adjusted trial balance.
b.	the current period's balance sheet.
c.	a comparative balance sheet.
d.	a comparative income statement.

	4.	To determine the net cash provided (used) by operating activities, it is necessary to analyze
a.	the current year's income statement.
b.	a comparative balance sheet.
c.	additional information.
d.	all of these.

	5.	Which of the following would not be needed to determine net cash provided by operating activities?
a.	Depreciation expense
b.	Change in accounts receivable
c.	Payment of cash dividends
d.	Change in prepaid expenses





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