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

Question

Quizplus · Accepted Answer

Dividends paid during the year are financing activities since they represent a distribution of earnings to shareholders. Therefore, they are reflected in the financing activities section of the cash flow statement.

Under ASPE on an Indirect Method Statement of Cash Flows,dividends