The Following Equity Transactions May Affect the Cash Flow Statement

question 108

Essay

The following equity transactions may affect the cash flow statement. For each transaction given, indicate the appropriate section of the cash flow statement where the transaction would appear and whether it would be a cash inflow (+) or a cash outflow (-). If a transaction doesn't appear on a cash flow statement, place an (X) in the "No Effect" column. Assume that the company is reporting its financial results in accordance with ASPE.
a. Issuance of common shares
b. Issuance of preferred shares
c. Repurchase of common shares
d. 2-for-1 stock split
e. Payment of cash dividends
f. Issuance of repurchased common shares at an amount above cost

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against its income.

Goodwill Impairment

A decrease in the recorded value of goodwill, indicating it is worth less than its carrying amount on the balance sheet.

FASB ASC

The Financial Accounting Standards Board Accounting Standards Codification, which is the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities.

Quantitative Assessment

The evaluation or measurement of something based on quantity or amounts.