When a company uses the direct method to present the statement of cash flows,the payment of cash dividends reduces the amount of net cash provided by operating activities.

Name: When a company uses the direct method to present the statement of cash flows,the payment of cash dividends reduces the amount of net cash provided by operating activities.
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Question

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The payment of cash dividends is classified under financing activities, not operating activities, in the statement of cash flows.

When a Company Uses the Direct Method to Present the Statement