Under Which Category Are Dividends Classified on the Statement of Cash

question 23

Multiple Choice

Under which category are dividends classified on the statement of cash flows?

• A) Cash From Investing Activities
• B) Cash From Operating Activities
• C) Cash From Financing Activities
• D) Cash From Profit Activities
• E) None of the above

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against the cost of a fixed asset, reducing its book value over time.

Permanent Account

An account that carries its ending balance over to the next accounting period, typically representing real accounts like assets, liabilities, and equity.

Closing Process

The steps taken at the end of an accounting period to prepare accounts for the next period, including zeroing out temporary accounts.

Closing the Books

Closing the books is an accounting process involving updating ledger accounts at the end of an accounting period to prepare financial statements.