Dividends received from an investment is classified as a(an)__________ cash flow,and paying dividends on stock issued is classified as a(an)____________ cash flow on the Statement of Cash Flows.

Question

Quizplus · Accepted Answer

Dividends received from an investment are generated by the investment portfolio of the company, meaning that it is an investing activity. On the other hand, paying dividends on stock issued represents a financing expense and is considered a financing activity on the Statement of Cash Flows.

Dividends Received from an Investment Is Classified as A(an)__________ Cash