Generally, the dividend payment appearing in the financing section of the cash flow statement represents:
A) current year's dividend.
B) proposed dividends from last year that have been paid, plus any interim dividends declared and paid in the current year.
C) proposed dividends from last year.
D) interim dividends declared in the current year.

Question

Quizplus · Accepted Answer

The dividend payment appearing in the financing section of the cash flow statement represents the proposed dividends from last year that have been paid, plus any interim dividends declared and paid in the current year. This is because dividends are typically declared and approved by the board of directors in one year, but paid out to shareholders in the following year. Additionally, some companies may declare interim dividends during the year as well. Therefore, the financing section includes all dividends that were proposed in a previous year and actually paid out in the current year.

Generally, the Dividend Payment Appearing in the Financing Section of the Cash