Asked by Grace Miller on Jun 17, 2024
Verified
The declaration and issuance of a stock dividend would be reported on the statement of cash flows.
Stock Dividend
A distribution of shares of stock to its stockholders.
Statement of Cash Flows
A financial statement showing the inflows and outflows of cash within a company over a specific period.
Declaration
A formal or explicit statement, announcement, or assertion.
- Understand the treatment of noncash investing and financing transactions on the statement of cash flows.
Verified Answer
BK
billa koushikJun 22, 2024
Final Answer :
False
Explanation :
The declaration and issuance of a stock dividend does not affect the cash flows of a company as no cash is being paid out. Therefore, it would not be reported on the statement of cash flows.
Learning Objectives
- Understand the treatment of noncash investing and financing transactions on the statement of cash flows.
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