Problem 4 (20 marks): Select only ONE option 1. An income statement: (a) summarizes the changes in retained earnings for a specific period of time. (b) reports the changes in assets, liabilities, and shareholders' equity over a period of time. (c) reports the revenues and expenses for a specific period of time. (d) reports the assets, liabilities, and shareholders' equity at a specific date. (e) none of the above 2. The statement of changes in equity would show (a) the beginning retained earnings balance. (b) the net income for the accounting period. (c) dividends declared. (d) the ending retained earnings balance. (e) all of the above 3. Financial statements are prepared in the following order? (a) Statement of financial position; income statement; statement of changes in equity; statement of cash flows. (b) Income statement; statement of cash flows; statement of financial position; statement of changes in equity. (c) Statement of changes in equity; statement of financial position; statement of cash flows; income statement. (d) Income statement; statement of changes in equity; statement of financial position; statement of cash flows. (e) Statement of cash flows; statement of changes in equity; statement of financial position; income statement