A statement of cash flows would not disclose the effect of which of the following transactions?
A)Stock dividends declared
B)Bonds payable issued
C)Purchase of treasury stock
D)Capital stock issued to acquire fixed assets

Question

Quizplus · Accepted Answer

The statement of cash flows would not disclose the effect of stock dividends declared because stock dividends do not involve the receipt or expenditure of cash. Instead, they represent a distribution of company profits to shareholders, often in the form of additional shares of stock. The other transactions listed would all affect the cash flows of the company in some way, and would therefore be included in the statement of cash flows.

A Statement of Cash Flows Would Not Disclose the Effect