Question
1.Which of the following statements is true? a. A balance sheet reports the total cash collected over an entire accounting period b. An income statement
1.Which of the following statements is true?
a. A balance sheet reports the total cash collected over an entire accounting period
b. An income statement reports the amounts of revenue earned and cash paid for expenses over a period of time
c. a retained earnings statement reports cash received from business operations and the amount of cash paid for dividend
d. a statement of cash flows explains the changes in cash and cash equivalents during a period.
2. How is the statement of retained earnings linked to the other financial statements?
a. the amount of retained earnings reported on the balance sheet is equal to net income
b. retained earnings is added to total assets and reported on the balance sheet
c. the total on the statement of retained earnings equals the amount of retained earnings on the balance sheet
d. there is no link between the retained earnings statement and the other statements, as each contains different accounts and provides different information.
sorry for 2 questions, im pretty sure what the first one is i just wanted a second opinion.
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