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From the following list, identify each item as operating, investing, financing, or not separately reported on the statement of cash flows
From the following list, identify each item as operating, investing, financing, or not separately reported on the statement of cash flows.
A) Payment of cash dividend on common stock
B) Payment of cash dividend on preferred stock
C) Distribution of stock dividend
D) Declaration of stock split
Expert Solution
A) Payment of cash dividend on common stock - Operating
B) Payment of cash dividend on preferred stock - Operating
C) Distribution of stock dividend - Not included in the statement of cash flows
D) Declaration of stock split - not included in the statement of cash flows
The items c and d were not considered when preparing the statement of cash flows because these transactions do not involve the cash account.
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