Which of the following statements is true?
Posted: Sat Aug 07, 2021 7:05 am
A) Expenses reported on the income statement are equal to the cash paid for operating activities
on the statement of cash flows.
B) The statement of cash flows has a relationship with the balance sheet.
C) Dividends paid are reported on the statement of cash flows as an operating cash flow and on
the income statement as a financing cash flow.
D) Net income is reported on the income statement but not on the statement of stockholders'
equity.
Answer: B
Explanation: The change in cash on the statement of cash flows is added to the beginning
balance of cash on the balance sheet. The result will equal the end-of-year balance in cash.
on the statement of cash flows.
B) The statement of cash flows has a relationship with the balance sheet.
C) Dividends paid are reported on the statement of cash flows as an operating cash flow and on
the income statement as a financing cash flow.
D) Net income is reported on the income statement but not on the statement of stockholders'
equity.
Answer: B
Explanation: The change in cash on the statement of cash flows is added to the beginning
balance of cash on the balance sheet. The result will equal the end-of-year balance in cash.