When a corporation pays dividends it:
A)does not affect the cash flow statement.
B)is shown as an investing activity.
C)is shown as a financing activity.
D)is shown as an operating activity.

Question

Quizplus · Accepted Answer

When a corporation pays dividends, it is distributing profits to its shareholders, which is a financial activity. As such, it is shown as a financing activity on the cash flow statement.

When a Corporation Pays Dividends It