Question

Cash flows arising from the payment of dividends are cash flows from: Multiple Choice financing activities....

Cash flows arising from the payment of dividends are cash flows from:

Multiple Choice

  • financing activities.

  • investing activities.

  • operating activities.

  • research activities.

Business   Accounting   
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Answer #1

Ans. Option 1st. Financing activities

Explanation: Transactions related to shares (issue or redemption) are listed under the financing activities section of a cash flow statement. Dividends and paid on share capital, so it is a part of financing activities section of cash flow statement.

*Investing activities : Transactions related to sales or purchase of fixed assets and investments.

*Operating activities : Transactions related to daily operations.

*Research activities : This is not a part of cash flow statement.

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