Which of the Following Statements About the Payment of Dividends

question 86

Multiple Choice

Which of the following statements about the payment of dividends is true?

• A)They are reported in the cash from operations.
• B)They are reported in the cash from financing activities.
• C)They are reported in the cash from investing activities.
• D)They are reported as an expense on the income statement.

---

Definitions:

Loanable Funds

The total amount of financial capital available for borrowing in financial markets.

Investment Projects

Initiatives undertaken by individuals, companies, or governments to allocate resources in the expectation of future financial returns.

Usury Laws

Regulations that set maximum interest rates which can be charged on loans, to protect borrowers from excessively high rates.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal, paid to lenders over a period.