When using the indirect method to determine operating cash flows,how would the declaration and payment of cash dividends be shown on the Statement of Cash Flows?
A)Operating activities
B)Investing activities
C)Financing activities
D)Noncash investing and financing activity
E)Not reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

The declaration and payment of cash dividends fall under financing activities on the statement of cash flows as they involve the distribution of funds from the company to its investors/shareholders.

When Using the Indirect Method to Determine Operating Cash Flows,how