Payment of Dividends Is Considered

question 41

Multiple Choice

Payment of Dividends is considered:

• A) an outflow of cash under Financing activities.
• B) an inflow of cash under Financing activities.
• C) an outflow of cash under Investing activities.
• D) an outflow of cash under Operating activities.

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Definitions:

Net Income

The final profit amount for a company, which comes after deducting all expenditures and taxes from the gross revenue.

Dividends

Financial rewards paid out to shareholders, mainly coming from the corporation's net income.

Significant Influence

A term referring to the power to participate in the financial and operating policy decisions of an entity but is not control or joint control over those policies.

Accounting Principle

Fundamental guidelines or rules that govern the financial accounting field, ensuring consistency, reliability, and comparability of financial statements.