Question

Stock dividends are reported in connection with a statement of cash flows as?

1) Operating activities
2) Investing activities
3) Financing activities
4) Non-cash activities

Answer 1

Stock dividends are reported in connection with a statement of cash flows as financing activities.

Step-by-step explanation:

Stock dividends are reported in connection with a statement of cash flows as financing activities. This is because stock dividends represent a distribution of profits to the company's shareholders, which is considered a financing activity.

It is important to note that while stock dividends are reported in the financing activities section, they do not involve the actual inflow or outflow of cash.