7. An appropriation of retained earnings by the board of directors of a corporation for future plant expansion will result in. Please explain

A.	A decrease in the total retained earnings presented on the balance sheet.
B.	A decrease in cash on the balance sheet with an equal increase in the investments and funds section of the balance sheet.
C.	The establishment of a fund to help finance future plant expansion.
D.	The disclosure that management does not intend to distribute, in the form of dividends, assets equal to the amount of the appropriation.

8. The primary purpose of a statement of cash flows is to provide relevant information about. Please explain

A.	Differences between net income and associated cash receipts and disbursements.
B.	An entitys ability to meet cash operating needs.
C.	An entitys ability to generate future positive net cash flows.
D.	The cash receipts and cash disbursements of an entity during a period.