Question

which of these is a transaction that would be reported in the statement of cash flows...

which of these is a transaction that would be reported in the statement

of cash flows itself rather than in the notes?
a. a bonus share issue
b. amortisation of goodwill
c.interim dividend paid
d. the acquisition of another entity by means of a hare issue

Homework Answers

Answer #1

The statement of cash flows mentions only the cash transactions which involve cash inflow and outflow:
a. bonus share are issued free of cost. There is no inflow or outflow of cash so this will not be mentioned in the statement
b. amortisation of goodwill like any ther depreciation is also a non cash transaction and therefore wont be mentioned in the cashflow statement
c.interim dividend paid involves cash outflow, like any other dividend, it will be mentioned in the cash flow statement
d. the acquisition of another entity by means of a share issue will not result in the a cash outflow and may not result in inflow either and the cash is reduced from the assets to come to the price of the target company. So it will not be mentioned on the cash flow statement.

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