Dividends Paid Are Treated as a Financing Activity on the Statement

question 48

True/False

Dividends paid are treated as a financing activity on the statement of cash flows.

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Definitions:

Bank Statement

A report issued by a bank detailing the transactions in a customer's account over a specific period.

Deposit In Transit

Money that has been received and recorded by a business but has not yet been recorded by its bank.

Outstanding Checks

Checks that have been written and recorded in the issuing entity's books but have not yet been cashed or cleared by the bank.

Note Receivable

A written promise for amounts to be received, typically outlining the terms including payment amounts, interest rate, and due date.