A to Z Corporation engaged in the following transaction "Paid a $10,000 cash dividend." On the Statement of Cash Flows,the transaction would be classified as
A)Cash Flows from Operating Activities.
B)Cash Flows from Investing Activities.
C)Cash Flows from Financing Activities.
D)Noncash transaction.

Question

Quizplus · Accepted Answer

Payment of dividends is a cash outflow related to financing activities, as it involves distributing a portion of the company's earnings to its owners (shareholders).

A to Z Corporation Engaged in the Following Transaction "Paid