27 28

Which financial statements would be affected by the payment of dividends to stockholders? The income statement and balance sheet only. The balance sheet and statement of cash flows only. The income statement, statement of stockholders' equity, balance sheet, and statement of cash flows. The statement of stockholders' equity, balance sheet, and statement of cash flows only. Which of the following statements is true regarding cash basis accounting? Cash accounting is allowed under GAAP. Revenue is recorded when earned. O Revenue is recorded when cash is collected from customers. Expenses are recognized or matched against the revenues that they helped produce