The issuance of a stock dividend is a cash outflow in the financing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

The issuance of a stock dividend is not a cash outflow, as it does not involve the distribution of cash. It is a non-cash transaction that involves transferring a portion of retained earnings into additional shares of stock. Therefore, it is not reported in the financing activities section of the statement of cash flows.

The Issuance of a Stock Dividend Is a Cash Outflow