Payment of cash dividends creates a cash outflow connected to investing activities.

Name: Payment of cash dividends creates a cash outflow connected to investing activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Payment of cash dividends is connected to financing activities because it involves a distribution of profits to shareholders. Investing activities involve the purchase or sale of long-term assets, such as property, plant, and equipment, or investments in other companies.

Payment of Cash Dividends Creates a Cash Outflow Connected to Investing