A Transfer from Retained Earnings to Common Shares in a Share

question 53

Multiple Choice

A transfer from retained earnings to common shares in a share dividend transaction should be reported in the statement of cash flows as:

• A) A note or separate schedule.
• B) An investing activity.
• C) A financing activity.
• D) An operating activity.
• E) Should not be reported in the statement of cash flows.

---

Definitions:

Inventory

The products and supplies that a company possesses with the primary intention of selling or converting them.

Financial Manager

A professional responsible for the financial health of a corporation, overseeing investment activities, and planning strategies for the long-term financial objectives.

Distribution Center

A facility where goods are received, stored, and then distributed to consumers or retail outlets.

New Store

A newly established retail outlet or branch of a business that has recently started operations.