A cash dividend that is declared during an accounting period,to be paid in the next accounting period,may be presented in the statement of cash flows in which of the following ways?
A) A use of cash from operating activities
B) A noncash transaction presented in a separate schedule
C) A use of cash from financing activities
D) A use of cash from investing activities

Question

Quizplus · Accepted Answer

Since the cash dividend declared will be paid in the next accounting period, it does not affect the current period's cash flows and is therefore presented as a noncash transaction in a separate schedule.

A Cash Dividend That Is Declared During an Accounting Period,to