When the direct method of preparing the statement of cash flows is used, the payment of dividends to stockholders appears in the operating activities section.

Name: When the direct method of preparing the statement of cash flows is used, the payment of dividends to stockholders appears in the operating activities section.
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Question

Quizplus · Accepted Answer

The payment of dividends to stockholders appears in the financing activities section of the statement of cash flows, not in the operating activities section.

When the Direct Method of Preparing the Statement of Cash