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Ingles Corp., a private company reporting under ASPE, engaged in the following transactions.For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-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

Question

Use the following information for questions 
Ingles Corp., a private company reporting under ASPE, engaged in the following transactions.For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-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

Quizplus · Accepted Answer

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.

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