When Using the Indirect Method, How Would the Declaration and Payment

question 191

Multiple Choice

When using the indirect method, how would the declaration and payment of cash dividends be shown on the statement of cash flows?

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

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities, usually to discourage their use or to raise revenue.

Elasticities

Measurements of how changing one economic variable affects others, such as how quantity demanded will change as a result of price changes.

Subsidy Benefit

Government-provided support to aid businesses, individuals, or sectors of the economy through financial help.

Elasticities

Measures in economics that demonstrate how the quantity demanded or supplied of a good responds to changes in price or other factors.