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Which of the following statements shows the amount of cash used to pay dividends or purchase treasury stock?

1) Statement of Cash Flows
2) Balance Sheet
3) Income Statement
4) Statement of Retained Earnings

1 Answer

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Final answer:

The Statement of Cash Flows is the financial document that reflects the amount of cash used to pay dividends or purchase treasury stock, listed under the financing section.

Step-by-step explanation:

The statement that shows the amount of cash used to pay dividends or purchase treasury stock is the Statement of Cash Flows.

This financial document is essential for understanding a company’s cash activities, specifically in the financing section, where transactions with shareholders and the net changes in treasury stock or dividends paid out are recorded. It provides detailed information on the cash generated or used by a company's operating, investing, and financing activities over a period of time.

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