Which of the Following Transactions Has an Effect on the Statement

question 156

Multiple Choice

Which of the following transactions has an effect on the statement of cash flows?

• A)The sale of preferred stock
• B)The declaration of a cash dividend
• C)A small stock dividend
• D)A large stock dividend

---

Definitions:

Standard Deduction

A fixed amount that reduces the income on which you are taxed, which the IRS allows taxpayers to subtract from their gross income to reduce taxable income.

Joint Return

A tax return filed jointly by a married couple, combining their incomes, deductions, and credits.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed to the government.

Standard Deduction

A portion of income that is not subject to tax and can be used to reduce a taxpayer's taxable income.