Indicate Whether Each of the Following Statements About Financial Statements

question 137

Short Answer

Indicate whether each of the following statements about financial statements is true or false.
_______ a) A cash dividend paid to stockholders is shown on the statement of cash flows.
_______ b) A cash dividend paid to stockholders is shown on the statement of changes in stockholders' equity.
_______ c) A cash dividend paid to stockholders is shown on the income statement.
_______ d) Among other things, the balance sheet shows how a company got its cash.
_______ e) Changes in retained earnings for the accounting period are shown on the income statement.

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Definitions:

Average Total Cost

The sum of average variable costs and average fixed costs (costs that do not change with the level of output) divided by the quantity of output, representing the total cost per unit of output.

Average Fixed Cost

Permanent production expenses, which don't fluctuate with output changes, divided by the output number.

Marginal Cost

The increase in cost that arises from an additional unit of production.

Average Variable Cost

The per unit cost of variable inputs (like labor and raw materials) that change with the level of output.