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)net income for the period only
C)both cash dividends paid and net income for the period
D)neither cash dividends paid nor net income for the period

Question

Quizplus · Accepted Answer

Cash dividends paid affect retained earnings and are reported in the financing activities section of the statement of cash flows. Net income affects retained earnings but is not reported in the financing activities section; it is part of the operating activities indirectly through its effect on cash flow from operations.

Which of the Following Items Affecting Retained Earnings During a Period