Answer the following statements true (T) or false (F)

1. The statement of cash flows identifies cash flows separated into operating, investing, and
financing activities over a period of time.
2. Ending retained earnings reported on the statement of retained earnings is calculated by
adding stockholder investments and net losses and subtracting net income and dividends.
3. The materiality constraint looks at both the importance and relative size of an amount.
4. The cost-benefit constraint prescribes that only information with benefits of disclosure less
than the costs of providing it, need be disclosed.
5. The cost-benefit constraint prescribes that only information with benefits of disclosure
greater than the costs of providing it need be disclosed.


1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. TRUE

Business

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