Question

A statement of cash flows and its related disclosure note typically do not report: a. Stock dividends. b. Notes payable issued for a building. c. The purchase of treasury stock. d. A finance lease.

Answer 1

Answer:

a. Stock dividends

Explanation:

As we know that the cash flow statement records those transactions which deals in cash only.

It includes three types of activities

1. Operating activities: It records payment of expenditures, cash receipts, changes in working capital

2. Investing activities: It records inflow and outflow of long term assets

3. Financing activities: It records the stockholder equity related transactions

Since in the given case, the related disclosure do not report the stock dividend as it does not involved any kind of cash transactions