When using the direct method to determine operating cash flows,how is the payment of a cash dividend shown on the Statement of Cash Flows?
A)Operating activity
B)Investing activity
C)Financing activity
D)Noncash investing and financing activity
E)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

When using the direct method to determine operating cash flows, the payment of a cash dividend is shown as a financing activity on the Statement of Cash Flows. This is because it represents a cash outflow to the company's owners/shareholders, which is classified as financing activity.

When Using the Direct Method to Determine Operating Cash Flows,how