10. What is the purpose of the statement of cash flows? 11. What are the three main categories of the statement of cash flows? Why do you think these categories were chosen? 12. What is retained earnings? What items increase the balance in retained earnings? What items decrease the balance in retained earnings? 13. What is the basic accounting equation? 14. (a) Define the terms assets, liabilities, and stockholders” equity. (b) What items affect stockholders” equity? 15. Which of these items are liabilities of Kool-Jewelry Stores?
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