For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question.
-Payment of dividends
A)Increase cash from operating activities
B)Decrease cash from operating activities
C)Increase cash from investing activities
D)Decrease cash from investing activities
E)Increase cash from financing activities
F)Decrease cash from financing activities
G)Noncash investing and financing supplement

Question

Quizplus · Accepted Answer

Payment of dividends is a financing activity and therefore will decrease cash from financing activities on the statement of cash flows prepared using the indirect method.

For Each of the Following Activities That May Take Place