Asked by
Charles Criger
on Nov 13, 2024
Verified
Cash dividends paid on capital stock would be reported in the statement of cash flows in
A) the Cash flows from financing activities section
B) the Cash flows from investing activities section
C) a separate schedule
D) the Cash flows from operating activities section
Cash Dividends
Payments made by a corporation to its shareholder members from the company's current or retained earnings.
Capital Stock
Reflects the amount of equity financing a company has generated through the sale of its shares to investors.
Financing Activities
Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).
- Distinguish among the categories of cash flow activities (operating, investing, and financing), including the distinct transactions that belong to each category.
- Acquire knowledge on the documentation and categorization of cash dividends within the Statement of Cash Flows.
Verified Answer
AR
Learning Objectives
- Distinguish among the categories of cash flow activities (operating, investing, and financing), including the distinct transactions that belong to each category.
- Acquire knowledge on the documentation and categorization of cash dividends within the Statement of Cash Flows.