A statement of cash flows and its related disclosure note typically do not report:
A)An acquisition of the use of a building with a lease agreement.
B)The purchase of treasury stock.
C)Stock dividends.
D)Notes payable issued for a tract of lanD.Stock dividends don't change assets, liabilities, or shareholders' equity.

Question

Quizplus · Accepted Answer

Stock dividends don't change assets, liabilities, or shareholders' equity, and therefore are not required to be reported in the statement of cash flows or its related disclosure note. However, other options listed - acquisition of use of a building, purchase of treasury stock, and notes payable issued for a tract of land - would have an impact on the cash and cash equivalents of a company and would be reported in the statement of cash flows or its related disclosure note.

A Statement of Cash Flows and Its Related Disclosure Note