Which of the following is true regarding the statement of cash flows?
A)The sale of stock to stockholders is an investing activity.
B)The repurchase of stock from stockholders is an investing activity.
C)The declaration of stock dividends is a financing activity.
D)The payment of cash dividends is a financing activity.

Question

Quizplus · Accepted Answer

The payment of cash dividends is a financing activity according to accounting standards, as it involves payments to stockholders which is a financing decision. Options A and B are incorrect as they relate to stock transactions, which are investing activities. Option C is incorrect as the declaration of stock dividends is also a financing activity, not an operating activity.

Which of the Following Is True Regarding the Statement of Cash