Answer: No

When stock options are exercised, the transaction is **not** recorded on the statement of cash flows. The exercise of stock options involves issuing new shares to employees in exchange for cash (the exercise price). This transaction affects the balance sheet (increasing cash and equity) but does not appear as a cash flow item because it represents an equity financing transaction that is typically disclosed in the notes to financial statements rather than on the cash flow statement itself.

Author: LeetQuiz Editorial Team