Which of the Following Changes in Retained Earnings During a Period

question 43

Multiple Choice

Which of the following changes in retained earnings during a period will be reported in the financing activities section of the cash flow statement?
1) Declaration of a cash dividend paid during the period.
2) Profit for the period.

• A) 1
• B) 2
• C) neither 1 nor 2.
• D) both 1 and 2.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where demand equals supply.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity.