Which one of the following is found in the ﬁnancing activity section of a statement of cash ﬂows?
A) Fixed asset acquisition.
B) Depreciation.
C) Increase in accounts receivable.
D) Dividends paid.
E) Net income.

Question

Quizplus · Accepted Answer

Dividends paid are a cash outflow and are therefore found in the financing activity section of the statement of cash flows. Fixed asset acquisition and depreciation are found in the investing activity section, increase in accounts receivable is found in the operating activity section, and net income can be found in the operating or financing activity section depending on if it was generated by operations or non-operating activities.

Which One of the Following Is Found in the ﬁNancing