Which of the following sections of the statement of cash flows includes the issuance of stock and the payment of cash dividends?
A) the investing activities section
B) the financing activities section
C) the operating activities section
D) the non-cash investing and financing section

Question

Quizplus · Accepted Answer

The issuance of stock and payment of cash dividends are both related to the financing of the company, therefore they would be included in the financing activities section of the statement of cash flows. The investing activities section would include things like the purchase or sale of property, plant, and equipment, while the operating activities section would include items related to the day-to-day operations of the business, like cash received from customers and payments to suppliers. The non-cash investing and financing section would include things like the exchange of stock for assets or the conversion of debt to equity.

Which of the Following Sections of the Statement of Cash