Asked by Kristen Gonzalez on Mar 10, 2024
Verified
Which of the following should be presented in a statement of cash flows? Stock Dividends Stock Splits I. Yes Yes II. Yes No III. No Yes IVI No No \begin{array}{lll}& \text { Stock Dividends}& \text { Stock Splits}\\\text { I. } & \text { Yes } & \text { Yes } \\\text { II. } & \text { Yes } & \text { No } \\\text { III. } & \text { No } & \text { Yes } \\\text { IVI } & \text { No } & \text { No }\end{array} I. II. III. IVI Stock Dividends Yes Yes No No Stock Splits Yes No Yes No
A) I
B) II
C) III
D) IV
Stock Dividends
A form of dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash.
Stock Splits
An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.
- Acquire knowledge on the methods of managing and recording non-cash transactions in investing and financing activities.
Verified Answer
CS
Cassandra SandbergMar 10, 2024
Final Answer :
D
Explanation :
Stock dividends and stock splits do not involve cash transactions and therefore are not presented in a statement of cash flows.
Learning Objectives
- Acquire knowledge on the methods of managing and recording non-cash transactions in investing and financing activities.
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