When preparing the statement of cash flows using the indirect method,the payment of dividends would appear as:
A) a decrease in the operating activities section
B) an increase in the operating activities section
C) a use of cash in the financing activities section
D) a source of cash in the financing activities section

Question

Quizplus · Accepted Answer

Payment of dividends is a financing activity and is therefore shown as a use of cash in the financing activities section of the statement of cash flows prepared using the indirect method.

When Preparing the Statement of Cash Flows Using the Indirect