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?
A) Declaration of a cash dividend paid during the period.
B) Net income for the period.
C) Neither declaration of a cash dividend paid during the period nor net income for the period.
D) Both declaration of a cash dividend paid during the period and net income for the period.

Question

Quizplus · Accepted Answer

The declaration of a cash dividend paid during the period is a financing activity because it involves the distribution of company funds to the shareholders. Net income for the period is not a financing activity, but is reported in the operating activities section of the statement of cash flows.

Which of the Following Changes in Retained Earnings During a Period