The statement of cash flows would disclose the payment of a dividend
A) in the financing activities section.
B) in the investing activities section.
C) in the operating activities section.
D) nowhere on the statement.

Question

Quizplus · Accepted Answer

Payment of dividends is considered a financing activity as it involves distributing profits to shareholders. Therefore, it would be reported in the financing activities section of the statement of cash flows.

The Statement of Cash Flows Would Disclose the Payment of a Dividend