Under which activity would the payment of dividend be

classified as, in a cashflow statement?

A Cashflow from Operating activities Correct Answer Incorrect Answer

B Cashflow due to working capital changes Correct Answer Incorrect Answer

C Cashflow from investing activities Correct Answer Incorrect Answer

D Cashflow from financing activities Correct Answer Incorrect Answer

E Not a cashflow item Correct Answer Incorrect Answer

Solution

Cash Flow from Financing Activities relates to cashflow from funding activities. Finance activities include the issuance and repayment of equity, payment of dividends, issuance and repayment of debt, payment of interest on debt, and capital lease obligations.

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Relevant for Exams:

Uiic AO Finance and Investment

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