Which of the following statements is correct?

Question

Quizplus · Accepted Answer

A) The payment of a cash dividend does not directly impact net income but instead affects retained earnings and the cash balance.
B) Cash received from issuing common stock to stockholders is reported as a financing activity cash flow because it represents cash inflow from owners or investors.
C) Providing services to a customer on account does impact net income because revenue is recognized even if payment has not been received yet.
D) The purchase of manufacturing equipment is reported within the statement of cash flows as an investing activity because it represents a cash outflow for acquiring long-term assets.

Which of the Following Statements Is Correct