Since it impacts Retained Earnings,the net income for the period would appear in the cash flows from financing activities section of a statement of cash flows prepared using the indirect method.

Question

Quizplus · Accepted Answer

Net income for the period would appear in the operating activities section of a statement of cash flows prepared using the indirect method, not in the financing activities section. The financing activities section includes cash flows related to debt and equity transactions, such as issuing or buying back stock, paying dividends, and borrowing or repaying loans.

Since It Impacts Retained Earnings,the Net Income for the Period