When the Direct Method Is Used to Determine Operating Cash

question 73

Multiple Choice

When the direct method is used to determine operating cash flows,how is the payment of a cash dividend shown on the statement of cash flows?

• A) as an operating activity
• B) as an investing activity
• C) as a financing activity
• D) as a noncash investing and financing activity

---

Definitions:

Sense of Power

The feeling of being in control and able to influence others or outcomes.

Competition

The rivalry among businesses or individuals for resources, customers, or market dominance.

Vital to Organization's Welfare

Considered essential for the survival, success, and health of an organization, often relating to key resources or strategic capabilities.

Creative Problem Solving

A method involving imagination and innovation to find solutions to complex issues.