QUESTION 11

Each of the following transactions would be classified as a financing activity except:

1. Repurchasing a company's shares for cash
2. Repayment of external borrowings
3. Acquiring an investment in the shares of another company
4. Cash payments for dividends to shareholders

QUESTION 12

National Co. reported a net loss of $30 000 for 2014, yet its cash balance increased during the year. Which financial statement should National's management refer to for an explanation of this situation?

1. Statement of comprehensive income
2. Statement of financial position
3. Statement of retained earnings
4. Statement of cash flows