To prepare the statement of cash flows using the indirect method,dividends paid are ________.
A)added to net income
B)subtracted from net income
C)already included in net income
D)included as an item in the financing section

Question

Quizplus · Accepted Answer

Dividends paid are considered a financing activity and should be included in the financing section of the statement of cash flows using the indirect method. They are not added or subtracted from net income, as they are not reflected in the income statement.

To Prepare the Statement of Cash Flows Using the Indirect