Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 35 - No. 6)
If a company declares and pays a cash dividend, how is the cash flow statement affected?
Cash outflow in the operating activities section.
Cash outflow in the investing activities section.
Cash outflow in the financing activities section.
Cash inflow in the operating activities section.
Explanation
Cash dividends paid are reported as an outflow in the financing activities section of the statement of cash flows.
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