Which of the Following Should Be Presented in a Statement

question 35

Multiple Choice

Which of the following should be presented in a statement of cash flows? Conversion of Conversion of
Long-term debt preferred stock
To common stock to common stock

• A)No No
• B)No Yes
• C)Yes Yes
• D)Yes No

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares of stock, rather than cash.

Basic Earnings Per Share

A financial metric that measures a company's profitability by dividing its net income by the weighted average number of common shares outstanding during the period.

EPS Disclosure

The requirement for public companies to report earnings per share (EPS) on their income statements, providing a direct measure of their profitability to shareholders.

GAAP

The Generally Accepted Accounting Principles, are the set of accounting standards that guide and standardize accounting practices to ensure consistency, reliability, and comparability of financial reports.