The Statement of Cash Flows does not report the effects of:
A) Common shares purchased for cancellation.
B) Cash dividends paid.
C) Common shares issued for cash to pay for assets or to pay debt.
D) Common shares issued as the result of a stock dividend.

Question

Quizplus · Accepted Answer

The Statement of Cash Flows reports cash transactions and changes in financial position over a period. Common shares issued as the result of a stock dividend do not involve cash transactions; instead, they represent a reallocation of amounts within shareholders' equity.

The Statement of Cash Flows Does Not Report the Effects