A dividend payment to shareholders during the year should be reported on the statement of cash flows as:
A)An increase in cash flows from financing activities
B)An increase in cash flows from investing activities
C)A decrease in cash flows from operating activities
D)A decrease in cash flows from investing activities
E)A decrease in cash flows from financing activities

Question

Quizplus · Accepted Answer

Dividend payments are considered a financing activity, and when dividends are paid, it results in a cash outflow, thus decreasing cash flows from financing activities.

A Dividend Payment to Shareholders During the Year Should Be