y activities Answer Multiple Choice Question 69 Assume that

y activities. Answer: Multiple Choice Question 69 Assume that the Fitzgerald Corporation uses the indirect method to depict cash fows. Indicate where, if at all, a stock dividend declared and issued would be classified on the statement of cash flows. a. b. C. d. Does not represent a cash flow. Operating activities section. Investing activities section. Financing activities section.

Solution

Statement of cash flow has three activities:

in operating activties of statement of cash flow under indirect method represents adjustement to reconcile net income to net cash flow from operating activities.

In investing activities represents cash inflow or cash outflow from long term assets and investment.

In financing activities represents cash inflow or cash outflow from equity share, dividend paid etc.

But stock dividend does not includes any cash inflow or outflow so stock dividend not represent in statement of cashflow.

so answer is a) Does not represent a cash flow.