Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Cash received from issuing common stock is classified as a cash inflow from financing activities within the statement of cash flows.

The other statements are incorrect:
A) The payment of cash dividend reduces retained earnings and has no direct impact on net income. 
C) Providing services on account increases revenue and net income in the period it is recognized. 
D) Interest payments are reported within the statement of cash flows as an operating activity, not as a financing activity.

Which of the Following Statements Is Correct