Robbins Company distributed a 5% common stock dividend, this will be reported in the financing activity section of the cash flow statement.

Question

Quizplus · Accepted Answer

Stock dividends do not involve the movement of cash; therefore, they are not reported in the cash flow statement at all. The cash flow statement only includes transactions that affect the company's cash position, categorized into operating, investing, and financing activities.

Robbins Company Distributed a 5% Common Stock Dividend, This Will