Use the following major cash flow activities to classify the activities listed below:
-Payment of cash dividends
A)Operating Activity, Source of Cash
B)Operating Activity, Use of Cash
C)Investing Activity, Source of Cash
D)Investing Activity, Use of Cash
E)Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity

Question

Quizplus · Accepted Answer

Payment of cash dividends represents a use of cash for the company, which is categorized under financing activities as it involves the issuance or repayment of debt or equity.

Use the Following Major Cash Flow Activities to Classify the Activities