On the Statement of Cash Flows, the Cash Flows from Operating

question 154

Multiple Choice

On the statement of cash flows, the cash flows from operating activities section would include

• A) receipts from the issuance of common stock
• B) payment for interest on short-term notes payable
• C) payments for the purchase of investments
• D) payments for cash dividends

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Definitions:

Dividend Payout Ratio

A financial metric indicating the percentage of a company's earnings paid out to shareholders in the form of dividends.

Debt-Equity Ratio

Calculating a corporation's financial leverage involves dividing total liabilities by the equity of shareholders.

Net Fixed Assets

Net fixed assets refer to the total value of a company's property, plant, and equipment minus depreciation, representing the actual value of company's long-term assets being used in operations.

Dividend Payout Ratio

The percentage of a company's earnings that is distributed to shareholders in the form of dividends.