When Using the Direct Method, How Is the Payment of a Cash

question 123

Multiple Choice

When using the direct method, how is the payment of a cash dividend shown on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

---

Definitions:

Grinding Machines

Machinery designed for the purpose of grinding materials to finer textures and shapes.

Profitable Use

The application or allocation of resources in a manner that maximizes the financial returns or benefits.

Variable Cost

Expenses that fluctuate in direct proportion to the amount of production, including raw materials and direct labor costs.

Grinding Machine Time

This refers to the amount of time a grinding machine is in actual operation to perform its designated tasks.