Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows.Indicate where, if at all, a stock dividend declared and issued would be classified on the statement of cash flows.
A)Operating activities section.
B)Investing activities section.
C)Financing activities section.
D)Does not represent a cash flow.

Question

Quizplus · Accepted Answer

A stock dividend does not involve the outflow of cash; it is a distribution of additional shares to shareholders, so it does not appear on the statement of cash flows.

Assume That the Fitzgerald Corporation Uses the Indirect Method to Depict