Which of the following statements about the statement of cash flows is correct?
A)A company with a net loss on the income statement will always have a net cash outflow from operating activities.
B)A purchase of equipment is classified as a cash inflow from investing activities.
C)Cash dividends received on equity investments are classified as cash flows from operating activities.
D)Cash dividends paid are classified as cash flows from operating activities.

Question

Quizplus · Accepted Answer

Cash dividends received are considered operating activities because they are part of the company's core business operations.

Which of the Following Statements About the Statement of Cash