Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Match the reporting classifications with the transactions described below.
-Noncash financing and investing activity
A)Cash collection of a nontrade note receivable.
B)Cash collected on accounts receivable.
C)Issuance of a long-term note payable for cash.
D)Cash purchase of securities issued by another corporation.
E)Payment of a property dividend.

Question

Quizplus · Accepted Answer

Payment of a property dividend is a noncash financing activity because it involves the distribution of noncash assets to shareholders, which does not affect the cash flow directly.

Listed Below Are the Reporting Classifications for a Statement of Cash