The statement of cash flows includes the effects of dividends paid and amortization expense.

Question

Quizplus · Accepted Answer

The statement of cash flows includes the effects of both dividends paid and amortization expense as they both impact the cash flows of a company. Dividends paid represent cash outflows for the company, while amortization expense represents non-cash expenses that affect the cash flows indirectly through the adjustment of net income.

The Statement of Cash Flows Includes the Effects of Dividends