Which of the Following Statements Is NOT Correct About the Financial

question 155

Multiple Choice

Which of the following statements is NOT correct about the financial statements?

• A)An income statement reports revenues,expenses,and net income information.
• B)The statement of stockholders' equity presents common stock,dividends,and retained earnings information.
• C)A balance sheet reports assets,liabilities,revenues,and expenses.
• D)The statement of cash flows shows cash inflows and outflows from operating,financing,and investing activities.

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Definitions:

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Corporation's Assets

The resources owned by a corporation that have economic value and can be used to meet its financial obligations.

Preferred Stockholders

Preferred stockholders are investors who own shares of a company's preferred stock, which often provides fixed dividends and priority over common stockholders in asset liquidation.

Current-Year Dividends

The dividends paid by a company to its shareholders from its earnings of the current fiscal year.