Payment of dividends would be reflected as a cash outflow in the investing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

Payment of dividends would be reflected as a cash outflow in the financing activities section of the statement of cash flows, not the investing activities section. The investing activities section includes cash inflows and outflows related to the acquisition and sale of long-term assets such as property, plant, and equipment, and investments in other companies.

Payment of Dividends Would Be Reflected as a Cash Outflow