Question
1. Which of the following is shown on a statement of cash flows? a. A stock dividend b. Direct labor hours c. An appropriation of
1. Which of the following is shown on a statement of cash flows?
a. A stock dividend
b. Direct labor hours
c. An appropriation of retained earnings
d. Significant noncash transactions from investing and financing
e. None of the above
2. How should significant noncash transactions such as the issuance of stock to purchase a building be reported in the statement of cash flows according to the FASB relating to Cash Flows?
a. They should be incorporated within the statement of cash flows in a section labeled, "Significant Noncash Transactions."
b. Such transactions should be incorporated in the section (operating, financing, or investing) that is most representative of the major component of the transaction.
c. These noncash transactions are not to be incorporated in the statement of cash flows. They may be summarized in a separate schedule below the statement or appear in a
separate supplementary schedule to the financials.
d. They should be handled in a manner consistent with the transactions that affect cash flows.
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