7. The amount of income taxes paid to the government would most likely be disclosed in which of the company's financial statements? a. Statement of financial position. b. Income statement. c. Statement of shareholders' equity. d. Statement of cash flows. 8. The specific identification method would probably be most appropriate for which of the following goods? a. Boxes of brass 4-inch drywall screws at RONA. b. Bottles of suntan lotion at Pharmacie Jean Coutu. c. Sets of tires at Canadian Tire. d. Diamond necklaces at La Baie. 9. If Mayflower Co.'s trade receivables are rising faster than its profit, which of the following is correct: a. Operating cash flows are rising and the Quality of Income ratio is falling. b. Operating cash flows are falling and the Quality of Income ratio is falling. c. Operating cash flows are rising and the Quality of Income ratio is rising. d. Operating cash flows are falling and the Quality of Income ratio is rising. 10. Wide World Corporation issued a 3-for-2 share split (i.e., three new common shares in exchange for two old shares). Which of the following statements is correct? a. The balance of Retained Earnings decreases and the balance of Share Capital increases. b. There is no change to either Retained Earnings or Share Capital. c. The balance of Retained Earnings increases and the balance of Share Capital decreases. d. None of the above answers