Which statement is true?
A)Stock splits and dividends are non-cash transactions. They are not recorded on the SCF.
B)Cash flows from the purchase and sale of treasury shares are reported as an investing activity.
C)OCI is normally reported in the financing section of the SCF.
D)Cash flows from discontinued operations would never be reported in the investing section of the SCF regardless of their nature.

Question

Quizplus · Accepted Answer

Stock splits and dividends are indeed non-cash transactions. Stock splits do not involve the exchange of cash and merely adjust the number of shares outstanding and the per-share price. Dividends, while they can involve cash when paid, do not affect the statement of cash flows (SCF) when declared. The declaration of dividends is a financing activity, but the actual payment is what impacts the SCF, not the declaration itself.

Which Statement Is True