Under what section of the Statement of Cash Flows would you classify dividends paid on common stock?
A) Operating.
B) Investing.
C) Financing.
D) Noncash activity.

Question

Under what section of the Statement of Cash Flows would you classify dividends paid on common stock?
A)	Operating.
B)	Investing.
C)	Financing.
D)	Noncash activity.

Quizplus · Accepted Answer

Dividends paid on common stock are considered financing activities because they represent a distribution of profits to shareholders, which is a way for a company to use its available funds to reward its investors.

Under What Section of the Statement of Cash Flows Would