A dam on a river that holds back a water reservoir begins to leak. Engineers say that there is a 10 percent chance of the dam breaking if repairs are not made. This is an example of classical probability

Poe, Inc. made $7,000 of cash sales to customers. The effect of this transaction on the accounting equation is:

A) Total shareholders' equity Total assets Total liabilities Contributed capital Retained earnings Increase No effect Increse No effect B) Total shareholders' equity Total assets Total liabilities Contributed capital Retained earnings Decrease No effect No effect Decrease C) Total shareholders' equity Total assets Total liabilities Contributed capital Retained earnings No effect Decrease No effect Increase D) Total shareholders' equity Total assets Total liabilities Contributed capital Retained earnings Increase No effect No effect Increase

Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements—Dividend Income (assume that cash received is equal to amount reported)—indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

a. Add to net income to arrive at net cash flows from operating activities b. Subtract from net income to arrive at net cash flows from operating activities c. Not used to adjust net income to calculate net cash flows from operating activities