In the statement of cash flows, changes in retained earnings are reported as two separate line items, which are __________ and ___________.
A)revenues and expenses
B)assets and liabilities
C)depreciation and amortization
D)net profits and taxes
E)none of the above

Question

Quizplus · Accepted Answer

Changes in retained earnings are not directly reported in the statement of cash flows as separate line items. Instead, they are reflected in the net income and dividends paid, which are part of the operating and financing activities, respectively.

In the Statement of Cash Flows, Changes in Retained Earnings