The Declaration of Dividends by the Board of Directors Would

question 85

Multiple Choice

The declaration of dividends by the board of directors would be reported on a statement of cash flows as a(an) :

• A) activity that would not be reported on a statement of cash flows
• B) cash outflow under the financing activities
• C) cash outflow under the investing activities
• D) cash inflow under the financing activities

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Definitions:

Executive Act

Actions taken by an executive branch of government, including decisions, policies, rules, or laws implemented by executive authority.

Legislative Act

A law or statute enacted by a legislative body.

Foreign Sales Representative

An agent who distributes, represents, or sells goods on behalf of a foreign seller, usually in return for the payment of a commission.

Distributor

A merchant who purchases goods from a seller for resale in a foreign market.