31. Help me selecting the right answer. Thank you The statement of cash flows explainswhy the net income on the income statement does not equal the change in the cash balancethe change in stockholders' equity from one period to anotherthe change in retained earnings from one period to anotherthe change in net income from one period to another

The statement of cashflow shows the inflow and outflow of cash transactions.

Answered: et income on the income statement does…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 17MC: Which statement is most directly affected by a change to net income? A. balance sheet B. income...

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Similar questions

Describe the relationship between changes in cash and changes in noncash assets, liabilities, and stockholders equity.
In computing the periods net operating cash flows, why are increases in current liabilities and decreases in current assets added back to net income?
In computing the periods net operating cash flows, why are noncash expenses added back to net income?
Why would "Stock-based Compenstion" be added back to earnings in operating activities in a Statement of Cash Flow?
How does a decrease in income taxes receivables on the balance sheet, impact cash flow? What is the journal entry to reflect this?
21 When preparing a statement of cash flows (indirect method), which of the following is not an adjustment to reconcile net income to net cash provided by operating activities? A change in income taxes payable A change in dividends payable A change in interest payable All of these are adjustments
The total change in cash as shown near the bottom of thestatement of cash flows for the year should agree withwhich of the following?a. The difference in Retained Earnings when reviewingthe comparative balance sheet.b. Net income or net loss as found on the income statement.c. The difference in cash when reviewing the comparativebalance sheet.d. None of the above.
Does net income represent a supply of cash that could be dis-tributed to stockholders in the form of dividends? Explain.
Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in inventory c.preferred dividends declared and paid d.a decrease in accounts receivable
Which of the following should be deducted from net incomein calculating net cash flow from operating activities using the indirect method? Group of answer choices a loss on sale of long-term investments a increase in accounts payable a increase in accounts receivable preferred dividends declared and paid
Vertical analysis can be used to analyze changes except O a. on a balance sheet. O b. on an income statement. C. on a statement of cash flows. O d. over time.
Which of the following statements accurately describes the statement of cash flows? A. It indicates when long-term debt will mature. B. It shows the relative proportion of debt and assets. C. It is the link between net income and earnings per share. D. It is the link between the accrual-based income statement and the cash reported on the balance sheet.

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et income on the income statement does not e in stockholders' equity from one period to a e in retained earnings from one period to anc e in net income from one period to another