Under ASPE on an indirect method statement of cash flows, dividends paid during the year are:
A) reflected in the investing activities section
B) reflected in the financing activities section
C) added to net income
D) deducted from net income

Question

Quizplus · Accepted Answer

Dividends paid during the year are a financing activity, as they involve the distribution of profits to shareholders. Therefore, they are reflected in the financing activities section of the statement of cash flows under the indirect method.

Under ASPE on an Indirect Method Statement of Cash Flows