On the statement of cash flows, payment of dividends is treated as a/an
A)investing activity.
B)financing activity.
C)outflow of cash from operations.
D)expenditure not requiring the use of cash.
E)none of the above.

Question

Quizplus · Accepted Answer

Payment of dividends is considered a financing activity because it involves distributing profits to the company's shareholders, which reduces the amount of cash available for future operations or investments.

On the Statement of Cash Flows, Payment of Dividends Is