All of the following would be reported in the financing activities section of the direct-method cash flow statement except:
A) issuing a stock dividend
B) issuing shares
C) issuing bonds at par
D) paying a cash dividend

Question

Quizplus · Accepted Answer

Issuing a stock dividend would be reported in the investing activities section of the direct-method cash flow statement since it involves the distribution of additional shares to existing shareholders. The remaining options (issuing shares, issuing bonds at par, and paying a cash dividend) are all examples of financing activities and would be reported in that section.

All of the Following Would Be Reported in the Financing