Which of the following is not correct?
A)The payment of stock dividends would be recorded in the cash flow statement.
B)Activities that do not involve cash are recorded in the cash flow statement.
C)The direct method of presentation for the cash flow statement can be used under ASPE.
D)The indirect method of presentation for the cash flow statement can be used under IFRS.

Question

Quizplus · Accepted Answer

The payment of stock dividends is not recorded in the cash flow statement because it does not involve the movement of cash. The cash flow statement only records transactions that have a direct impact on a company's cash position. Stock dividends involve the distribution of additional shares to shareholders, not the movement of cash.

Which of the Following Is Not Correct