Which of the Following Changes in Retained Earnings During a Period

question 52

Multiple Choice

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.

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Definitions:

Cash Registers

Electronic or mechanical devices used to calculate and record sales transactions, and to store cash for daily business operations.

Internal Control

Methods and protocols established by an enterprise to protect the veracity of its financial and accounting reports, support ethical conduct, and prevent malfeasance.

Electronic Funds Transfer

Electronic Funds Transfer (EFT) is the digital transfer of money from one bank account to another, either within the same financial institution or across different institutions.

Disbursement System

The system and processes involved in paying out money from an organization or fund.