Asked by Harry Nayan on May 14, 2024
Verified
A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:
A) An increase in cash flows from financing activities
B) An increase in cash flows from investing activities
C) A decrease in cash flows from operating activities
D) A decrease in cash flows from investing activities
E) A decrease in cash flows from financing activities
Cash Dividend Payment
A distribution of a company's earnings declared by the board of directors to its shareholders in the form of cash.
Financing Activities
Financing activities are transactions between a company and its creditors or investors, including issuing equity, paying dividends, and obtaining or repaying loans, which are used to fund the company's operations or expansions.
Statement Of Cash Flows
A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.
- Comprehend the elements and the process involved in creating the statement of cash flows.
- Examine fluctuations in long-term assets, liabilities, and equity accounts to identify cash movements from investing and financing operations.
Verified Answer
Learning Objectives
- Comprehend the elements and the process involved in creating the statement of cash flows.
- Examine fluctuations in long-term assets, liabilities, and equity accounts to identify cash movements from investing and financing operations.
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