This means "applying a new accounting policy to transaction, other events and conditions as if that policy had always been applied" Select one: a. Retrospective Application b. Prospective Application c. Prospective Restatement d. Retrospective Restatement Earnings per share shall be computed on the basis of Select one: a. Average common shares outstanding during the year b. Common shares outsanding at the middle of the year c. Common shares outsanding at the end of the year d. Common shares outsanding at the beginning of the year The financial statement that links income statement and balance sheet together is called? Select one: a. Statement of Changes in Equity b. Statement of Financial Condition c. Statement of Financial Position d. Statement of Retained Earnings The following are examples of operating activities except, Select one: a. Payments to reduce principal of notes payable b. Cash sales and cash collection from customers c. Payments of interest on loans d. Paying taxes Last year, accounts payable was $49,000. This year accounts payable is $9,000. Which of the following statements about the statement of cash flow is correct? Select one: a. Cash has increased by $40,000 from operating activities b. Cash has decreased by $40,000 from operating activities c. Cash has decreased by $40,000 from financing activities d. Cash has increased by $9,000 from financing activities