Which of the following financial statements is divided into major categories of operating, investing, and financing activities?

a- The statement of cash flows.

b- The balance sheet.

c- The income statement.

d- The retained earnings statement.

4- Ending retained earnings for a period is equal to beginning

a- Retained earnings –Net income – Dividends

b- Retained earnings + Net income – Dividends

c- Retained earnings + Net income + Dividends

d- Retained earnings – Net income + Dividends.

5- Which of the following is not an advantage of the corporate form of business organization?

a- No personal liability

b- Favorable tax treatment

c- Easy to transfer ownership

6- Which of the following is not an advantage of the corporate form of business organization?

a- No personal liability

b- Favorable tax treatment

c- Easy to transfer ownership

d- Easy to raise Funds