Which of the following statements about the statement of cash flows is correct?
A) A purchase of equipment is classified as a cash inflow from investing activities.
B) Cash dividends paid are classified as cash flows from operating activities.
C) Cash dividends received on stock investments are classified as cash flows from operating activities.
D) A company with a net loss on the income statement will always have a net cash outflow from operating activities.

Question

Which of the following statements about the statement of cash flows is correct? 
A) A purchase of equipment is classified as a cash inflow from investing activities.
B) Cash dividends paid are classified as cash flows from operating activities.
C) Cash dividends received on stock investments are classified as cash flows from operating activities.
D) A company with a net loss on the income statement will always have a net cash outflow from operating activities.

Quizplus · Accepted Answer

Cash dividends received are considered part of operating activities because they are part of the company's core business operations and are included in net income.

Which of the Following Statements About the Statement of Cash