Which of the following items is reported on the statement of cash flows under financing activities?
A)Purchase of equipment for cash.
B)Payment of a cash dividend.
C)Payment for merchandise.
D)Payment of a stock dividend.
E)Stock split.

Question

Quizplus · Accepted Answer

Payment of a cash dividend is reported on the statement of cash flows under financing activities, as it represents cash outflows related to distribution of profits to shareholders. Purchases of equipment and payments for merchandise would typically be reported under investing activities, and payment of a stock dividend or stock split would not be reflected on the statement of cash flows.

Which of the Following Items Is Reported on the Statement