Which of the following is reported as a financing activity on the statement of cash flows?
A)Declaration of dividends
B)Sale of preferred stock
C)Conversion of preferred stock to common stock
D)Stock split

Question

Quizplus · Accepted Answer

The sale of preferred stock would be reported as a financing activity on the statement of cash flows as it represents a source of financing for the company. Declaration of dividends represents a distribution of funds, not a source or use of cash and would be reported as a cash outflow from operating activities. Conversion of preferred stock to common stock and stock split are both accounting transactions that do not involve the receipt or payment of cash and would not be reported on the statement of cash flows.

Which of the Following Is Reported as a Financing Activity