With respect to the statement of cash flows,
A)retirement and repurchase of stock is a financing activity.
B)a stock split is a financing activity.
C)a stock dividend is an investing activity.
D)the declaration of a cash dividend account is an operating activity.

Question

Quizplus · Accepted Answer

Retirement and repurchase of stock involves payments to shareholders, which is a financing activity.

Answer: B 
 A stock split does not involve any actual money transactions, but rather a redistribution of existing shares. It is considered a financing activity because it affects the capital structure of the company.

Answer: C 
 A stock dividend involves the issuance of new shares to existing shareholders, which is an investing activity.

Answer: D 
 The declaration of a cash dividend affects the cash balance of the company, which is an operating activity.

With Respect to the Statement of Cash Flows