Under ASPE on an Indirect Method Statement of Cash Flows

question 52

Multiple Choice

Under ASPE on an indirect method statement of cash flows, dividends paid during the year are:

• A) reflected in the investing activities section
• B) reflected in the financing activities section
• C) added to net income
• D) deducted from net income

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Definitions:

Incidental Beneficiary

A third party who benefits from a contract between two other parties, despite not being a party to that contract and having no rights to enforce the terms of the contract.

Intended Beneficiary

A person or entity that is not a party to a contract but stands to benefit from the contract's performance.

Obligor

A contractual party who agrees to do something for the other party.

Donee Beneficiary

A donee beneficiary is a third party who benefits from a contract made between two other parties, where the intent is to gift the benefits of the contract to this third party.