Question

Payment of dividends would come under which activity on the statement of cash flows?

A. Financing
B. Operating
C. Investing
D. None of these answer choices are correct

Answer 1

Payment of dividends would come under the Financing activity on the statement of cash flows.

Step-by-step explanation:

Payment of dividends would come under the Financing activity on the statement of cash flows.

In the statement of cash flows, cash flows from financing activities represent the cash transactions that involve the issuance or repayment of the company's own capital, such as dividend payments to shareholders, payment of loans, or issuance of stock.

Dividends are payments made to shareholders as a distribution of the company's profits, and therefore fall under the financing activity.