Dividend payments are categorized as:
A)cash flow from operating activities.
B)cash flow from investment activities.
C)cash flow from financing activities.
D)All of the above

Question

Quizplus · Accepted Answer

Dividend payments are classified as cash flow from financing activities since they are payments made to shareholders as a return on their investment in the company. Cash flow from operating activities is related to the company's core business operations, while cash flow from investment activities deals with investments in long-term assets such as property, plant, and equipment. Therefore, option C, cash flow from financing activities, is the best choice.

Dividend Payments Are Categorized As