Which of the following transactions would not create a cash flow?
A)The company purchased some of its own stock from a stockholder.
B)Payment of a dividend.
C)The company purchased land by issuing common stock.

Question

Quizplus · Accepted Answer

Transaction C would not create a cash flow because it involves an exchange of non-cash assets (land) for equity (common stock), meaning no cash is actually entering or leaving the company's accounts. Transactions A and B involve cash outflows for the purchase of stock and payment of dividends, respectively.

Which of the Following Transactions Would Not Create a Cash