The payment of cash dividends to common stockholders is classified as a financing activity on the statement of cash flows whereas payment of a cash dividend to p

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The payment of cash dividends to common stockholders is classified as a financing activity on the statement of cash flows. However, the statement seems incomplete regarding the second part, which might refer to preferred stockholders, but the classification remains the same for both.

The Payment of Cash Dividends to Common Stockholders Is Classified