How Is the Receipt of Dividends from Stock Investments Reported

question 96

Multiple Choice

How is the receipt of dividends from stock investments reported on the statement of cash flows?

• A)As an investing activity
• B)As an operating activity
• C)As a financing activity
• D)As a non-cash activity

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Definitions:

Variable

An element, feature, or factor that is likely to vary or change in ways that can affect the outcome of research or experiments.

Fixed

Typically refers to costs or assets that remain constant and do not vary with the level of activity or production.

Linear Relationship

A direct relationship between two variables that can be represented graphically as a straight line, indicating consistent proportionality.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.