Under which category are dividends classified on the statement of cash flows?
1. |
Cash From Investing Activities |
|
2. |
Cash From Operating Activities |
|
3. |
Cash From Financing Activities |
|
4. |
Cash From Profit Activities |
|
5. |
None of the above |
Answer
The correct answer is 3 :- Cash from financing activities.
Explanation :-
Payment of dividend to investors creates a cash outflow from financing activities.
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