Distributions that are paid to owners would affect both the
A)balance sheet and statement of cash flows
B)balance sheet and income statement
C)income statement and statement of changes in equity
D)income statement and statement of cash flows

Question

Quizplus · Accepted Answer

Distributions to owners, such as dividends, decrease retained earnings (an equity account on the balance sheet) and also represent an outflow of cash, affecting the statement of cash flows. They do not directly affect the income statement.

Distributions That Are Paid to Owners Would Affect Both the