A Statement of Cash Flows Typically Would Not Disclose the Effects

question 67

Multiple Choice

A statement of cash flows typically would not disclose the effects of

• A)ordinary shares issued at an amount greater than par value.
• B)share dividends declared.
• C)cash dividends paid.
• D)a purchase and immediate retirement of treasury shares.

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Definitions:

Noncumulative Quantity Discount

A price reduction offered on a single purchase order, not based on the quantity ordered over time.

Price Reduction

A decrease in the selling price of a product or service, often to attract more customers or to sell excess inventory.

Trade Discount

A trade discount is a reduced price offered by suppliers to retailers or other professionals in the industry, encouraging bulk purchases or to compensate for distribution services.

Cumulative Quantity Discount

A discount policy where the price reduction is based on the total volume of purchases made over time, encouraging repeated business by rewarding larger orders.