Which of the following sections of the statement of cash flows includes the issuance of stock and the payment of cash dividends?

Question

Quizplus · Accepted Answer

The issuance of stock and the payment of cash dividends are activities related to financing, therefore they are included in the financing section of the statement of cash flows. A is incorrect because the investing section includes activities related to the acquisition and disposal of long-term assets, such as property, plant, and equipment. C is incorrect because the operating section includes activities related to the day-to-day operations of the company, such as sales, collections from customers, and payments to suppliers. D is incorrect because the non-cash investing and financing section includes information about transactions that did not involve cash, such as the exchange of stock for assets or the conversion of debt to equity.

Which of the Following Sections of the Statement of Cash