Would the payment of a dividend previously declared appear in the operating, investing, or...
Question:
Would the payment of a dividend previously declared appear in the operating, investing, or financing activities section of the statement of cash flows? Explain.
Cash Dividends:
Cash dividends are declared by the board of directors in the annual general meeting, followed by approval from the shareholders. Cash dividends can't be revoked once they are declared. They are paid within thirty days from the date of declaration.
Answer and Explanation: 1
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The payment of a dividend appears in the financing activities section of the statement of cash flows.
Explanation:
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Cash Dividends & Dividend Payment
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Chapter 16 / Lesson 1
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Dividends are incentives in the form of payments to shareholders of a company. Explore the different types of dividends and the standard method of payments that they occur in.
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