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QUESTION 24 An income statement would not include OA discontinued operations. OB dividends paid. OC other revenue and gains.
QUESTION 26 Generally, the most important category on the statement of cash flows is cash flows from OA operating activities.
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Answer #1

(a.) Dividends paid is not shown in Income Statement, as it is shown in Statement of Stockholders' Equity. While discontinued operations, other revenue and gains, and extraordinary items are shown in Income Statement.

Answer: B. Dividends paid

(b.) Operating activities is the most important category on the statement of cash flows, because it shows the net cash generated from the operating activities of the entity. Generally, cash flows from operating activities have most number of items and adjustments, therefore the net cash generated from operating activities wouldn't be known without preparing the cash flow statement. It also tells how much the operations of the entity are liquid. Investing and financing activities may have higher amount of cash flows but the items are generally limited in it, the net flows of which are generally known to the management even without cash flow statement. Also, investing and financing activities are ancillary to the operating activities as they just support the business objectives of the entity.

Answer: A. Operating activities

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