1. The prepaid expense account decreased during the year. This is a ___________ of cash reported in the _____________ section of the statement of cash flows.
Use; operating
Source; operating
Use; investing
Source; investing
Use; financing
Source; financing
2. A company paid dividends of $19,000 this year. If ending retained earnings is $185,000 and beginning retained earnings is 145,000, was what was the net income earned for the year?
$31,000
$40,000
$59,000
($31,000)