Which of the following is reported on the statement of cash flows as a financing activity?
A)Declaration of a cash dividend.
B)Payment of a cash dividend.
C)Issuance of a stock dividend.
D)Stock split.

Question

Quizplus · Accepted Answer

Payment of a cash dividend is reported on the statement of cash flows as a financing activity because it involves the distribution of cash to shareholders, which is linked to the company's financing activities. The declaration of a cash dividend is not reported on the statement of cash flows, as it represents only an intention to pay a dividend in the future. Issuance of a stock dividend and stock split both affect the equity section of the balance sheet and are not reported as financing activities on the statement of cash flows.

Which of the Following Is Reported on the Statement of Cash