Asked by Sarah-Cate Parker on May 09, 2024
Verified
Declaration and issue of a stock dividend:
A) operating activities section
B) investing activities section
C) financing activities section
D) does not represent a cash flow
Stock Dividend
A payment of additional shares of stock to shareholders instead of cash.
Financing Activities
Activities that result in changes in the size and composition of the equity capital or borrowings of an entity.
Declaration
An official statement, announcement, or acknowledgment made by an authority.
- Recognize the distinctions between cash flows arising from operations, investments, and financial activities.
- Acknowledge the procedures for reporting and identifying investing and financing activities that do not involve cash.
Verified Answer
GV
Gilda VazquezMay 16, 2024
Final Answer :
D
Explanation :
The declaration and issue of a stock dividend does not involve the movement of cash; instead, it represents a reallocation of amounts within shareholders' equity. Therefore, it does not appear on the statement of cash flows.
Learning Objectives
- Recognize the distinctions between cash flows arising from operations, investments, and financial activities.
- Acknowledge the procedures for reporting and identifying investing and financing activities that do not involve cash.