Paying cash dividends to common shareholders will not affect the Cash Flow Statement.

Name: Paying cash dividends to common shareholders will not affect the Cash Flow Statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Paying cash dividends to common shareholders will decrease the company's cash balance, which will be reflected in the Cash Flow Statement under the financing section. Specifically, it will be classified as a cash outflow in the financing activities section.

Paying Cash Dividends to Common Shareholders Will Not Affect the Cash