Question

A company declared and paid a cash dividend. The dividend would appear on the company's statement of cash flows as: Select one: a. an addition to net income in order to arrive at net cash provided by operating activities under the indirect method. b. a deduction from net income in order to arrive at net cash provided by operating activities under the indirect method. c. a deduction under investing activities. d. a deduction under financing activities.

Answer 1

d. a deduction under financing activities.

Step-by-step explanation:

As if the company declared and paid the cash dividend so the same is to be considered in the financing activities of the cash flow statement.

This amount should be shown in the negative amount as it decreases the cash that means it is an outflow of cash

Hence, the correct option is d. and the same is to be considered