Which of the following statements is false?
A)A share dividend has no impact on cash.
B)Repurchase of shares (treasury shares)and payment of cash dividends reduce cash flow from financing activities.
C)Issuance of preferred shares would increase cash from financing activities.
D)Repurchases of shares at prices lower than the average issue price result in profit for the issuing company because they are capital transactions,not operating transactions

Question

Quizplus · Accepted Answer

Repurchases of shares at prices lower than the average issue price do not result in profit for the issuing company. These are capital transactions and do not affect the income statement or result in profit.

Which of the Following Statements Is False