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In a statement of cash flows, which of the following items is reported as a cash outflow from financing activities? I. Payments to retire mortgage notes II. Interest payments on mortgage notes III. Dividend payments

User Maxxxo
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2 Answers

1 vote

Answer:

Dividend Payment

Step-by-step explanation:

FINANCING ACTIVITIES: This term refers to the net amount of cash that is used to fund the company. It is usually generated by the company over some period of time. It belongs to the section of a company's cash flow.

One the main example of financial activity is "Divident Payment".

DIVIDEND PAYMENT:This is one of the item of cash outflow from financing activities, and this involve the payment of the dividends to the company shareholders which is part of the cash generated by the company.

Dividents are usually paid to the the investors, and it is reffered to as variable interest to the investors.

Dividends paid from the profits only appear on the statement cash flow as "OUTFLOW"

STATEMENT OF CASH FLOW; This refers to the financial statement that shows the relationship between the amount of cash and cash equivalent of a company.

Cash flow can be classified as positive cash flow and negative cash flow.

User Jacquelynn
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6 votes

Answer:

Dividend Payment

Step-by-step explanation:

Financing activities are activities that affect the share capital of a company

User Kiev
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