The receipt of dividends on an investment will be reported in a cash flow statement as:
A) a cash outflow for financing activities.
B) a cash inflow for investing activities.
C) a cash inflow from operating activities.
D) either B or C

Question

Quizplus · Accepted Answer

Dividends received can be classified either as operating cash inflows if the dividends are received from investments that are part of the entity's normal operations, or as investing cash inflows if they are received from investments that are not part of the entity's normal operations. The classification can vary depending on the nature of the investment relative to the business's operations.

The Receipt of Dividends on an Investment Will Be Reported