Under what section of the Statement of Cash Flows would you classify dividends paid on common stock?
A)Operating.
B)Investing.
C)Financing.

Question

Quizplus · Accepted Answer

Dividends paid on common stock are classified under the financing section of the Statement of Cash Flows. This is because dividends are a distribution of profits to the shareholders and represent a cash outflow for the company, similar to the repayment of debt or the issuance of stock.

Under What Section of the Statement of Cash Flows Would