In a statement of cash flows, the cash flows from investing activities section should report
a.the issuance of common stock in exchange for a factory building.
b.stock dividends received.
c.a major repair to machinery charged to accumulated depreciation.
d.the assignment of accounts receivable.
Is C correct? Since the investing has to do with current assets on the balance sheet.
Are these investments by an individual or a corporation?
I don't see what machinery has to do with investing activities, or why a company would be getting stock dividends, unless it has a stake in another company.
b.stock dividends received.
No, option C is not correct. The cash flows from investing activities section in the statement of cash flows does not typically report major repairs or expenses charged to accumulated depreciation. The investing activities section primarily focuses on the purchase and sale of long-term assets (capital expenditures), such as property, plant, and equipment.
So, let's analyze the other options:
a. The issuance of common stock in exchange for a factory building would be reported in the financing activities section because it involves raising capital through the issuance of equity.
b. Stock dividends received would be reported in the operating activities section since it represents earnings from investments and is considered an operating cash flow.
d. The assignment of accounts receivable would be reported in the operating activities section as it represents a transaction related to the company's primary operations.
In conclusion, the correct answer is b. Stock dividends received.