Significant Noncash Transactions Are Not Reported on the Statement of Cash

question 85

True/False

Significant noncash transactions are not reported on the statement of cash flows,but either in a separate schedule or in a note to the financial statements.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.

Stock Dividend

A payment to shareholders in the form of additional shares rather than cash, reflecting a company's earnings.

Sold Below Cost

The act of selling a product for less than its production or acquisition cost, typically to clear inventory or meet competitive pricing.

Treasury Stock

Equity that was once distributed to the public and later purchased again by the issuer, diminishing the total shares in circulation.