In a statement of cash flows,payments of dividends are classified as:
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Costs and Expenses.

Question

Quizplus · Accepted Answer

Payments of dividends are considered to be financing activities because they involve distributing profits to investors, which is a way of returning money to the owners of the company. Financing activities include raising capital, paying dividends, repurchasing stock, and paying off debt.

In a Statement of Cash Flows,payments of Dividends Are Classified