Which of the following transactions would not create a cash flow?

Question

Which of the following transactions would not create a cash flow?

 

A. The company purchased some of its own stock from a stockholder.

 

B. Payment of a dividend.

 

C. The company purchased land by issuing common stock.

 

D. Sale of equipment at book value.

Answer 1

Every one of the transactions involves the actual exchange of cash except C.  In C, land and stock are exchanged.  Each has value, but neither one is cash.