When using the direct method,how is the payment of a cash dividend shown on the statement of cash flows?
A)As an operating activity
B)As an investing activity
C)As a financing activity
D)As a noncash investing and financing activity

Question

Quizplus · Accepted Answer

When using the direct method, the payment of a cash dividend is shown as a financing activity on the statement of cash flows. This is because it represents a distribution of earnings to shareholders, which is a financing-related transaction.

When Using the Direct Method,how Is the Payment of a Cash