Under ASPE, dividends paid must be classified as a financing activity.

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Under ASPE (Accounting Standards for Private Enterprises), dividends paid must be classified as a financing activity because it involves distributing cash to shareholders and reducing the company's equity. Financing activities involve transactions that affect the company's long-term liabilities and equity, including taking out loans, issuing shares, and paying dividends.

Under ASPE, Dividends Paid Must Be Classified as a Financing