A 10% Stock Dividend Is Reported in Connection with a Statement

question 24

Multiple Choice

A 10% stock dividend is reported in connection with a statement of cash flows as:

• A) A financing activity.
• B) An investing activity.
• C) A noncash activity.
• D) Not reported in the statement of cash flows.

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Definitions:

Net Operating Income

A financial metric that calculates a company's operational profitability, excluding interest and taxes.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after accounting for the direct and traceable costs of the segment.

Segmented Income Statement

An income statement that separates financial information into segments, such as departments or products, to analyze each segment's profitability.