The payment of a stock dividend would appear as a cash outflow in the financing activities section on a cash flow statement.

Question

Quizplus · Accepted Answer

The payment of a stock dividend would not appear as a cash outflow in the financing activities section. A stock dividend is paid by issuing additional shares of stock to existing shareholders, so it does not involve the use of cash. Therefore, it would not be reflected on the cash flow statement.

The Payment of a Stock Dividend Would Appear as a Cash