Becker Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Becker's statement of cash flows?

A) In operating activities as a source of funds.
B) In investing activities as a source of funds.
C) In investing activities as a use of funds.
D) In financing activities as a source of funds.
E) In operating or financing activities as a use of funds.

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Jessica Machado · Accepted Answer

Final Answer : E, Explanation :  Cash dividends paid are considered a use of funds and are typically reported in the financing activities section of the statement of cash flows. However, there can be flexibility in presentation, and in some cases, dividends paid can be seen as part of operating activities if they are treated as a cost of accessing financial resources.

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