Rent Expense That Is Paid with Cash Appears on Which

question 8

Multiple Choice

Rent expense that is paid with cash appears on which of the following statements?

• A) Balance sheet.
• B) Income statement.
• C) Statement of changes in equity.
• D) Income statement and statement of cash flows.
• E) Statement of cash flows only.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.

Plant Expansion

The process of increasing the capacity or capabilities of existing facilities through additional space, equipment, or technology.

Dividend Declarations

A corporate action where a company announces the payment of dividends to its shareholders.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.