Knowee
Questions
Features
Study Tools

what kind of activity is payment of dividends in the statement of cash flows?

Question

what kind of activity is payment of dividends in the statement of cash flows?

🧐 Not the exact question you are looking for?Go ask a question

Solution

The payment of dividends in the statement of cash flows is classified as a financing activity. This is because it involves the movement of cash between the company and its investors or owners. Financing activities generally include transactions with owners and the borrowing or repayment of money. Therefore, when a company pays dividends, it is using its cash to finance the business, hence it is considered a financing activity.

This problem has been solved

Similar Questions

How is the payment of dividends to shareholders classified on the statement of cash flows?Group of answer choices

Dividends paid belong in the operating activities section of the statement of cash flows.Group startsTrue or FalseTrue, unselectedFalse, unselected

A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:Multiple ChoiceA decrease in cash flows from operating activities.An increase in cash flows from financing activities.A decrease in cash flows from financing activities.A decrease in cash flows from investing activities.An increase in cash flows from investing activities.

Which of the following is not included in the operating activities section of a cash flow statement?  A. Dividend payments  B. Cash received from customers  C. Cash paid to suppliers  D. Payment for salaries

The Statement of cash flows helps management, investors, creditors and other interested parties evaluate the following about the entity (choose all that apply):Group of answer choicesCash investing and financing transactions for the periodExplains the difference between profit and net cash provided (used) by operating activitiesAbility to pay share dividends and meet obligationsAbility to generate future cash flows

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.