Which of the following items affecting retained earnings during a period could be reported in the financing activities section of the statement of cash flows?
A)Cash dividends paid only
B)Profit for the period only
C)Both cash dividends paid and profit for the period
D)Neither cash dividends paid nor profit for the period

Question

Quizplus · Accepted Answer

Cash dividends paid are considered financing activities because they involve a distribution of profits to shareholders. Profit for the period is reported in the operating activities section of the statement of cash flows.

Which of the Following Items Affecting Retained Earnings During a Period