In a statement of cash flows, the payment of a cash dividend on preferred stock outstanding should be classified as cash outflows for
A) operating activities.
B) investing activities.
C) lending activities.
D) financing activities.

Question

Quizplus · Accepted Answer

The payment of a cash dividend on preferred stock is classified as a cash outflow for financing activities because it relates to the company's financing and capital structure.

In a Statement of Cash Flows, the Payment of a Cash