Using the Indirect Method to Prepare the Statement of Cash

question 27

Multiple Choice

Using the indirect method to prepare the statement of cash flows,dividends paid during the year are:

• A)subtracted from net income in the operating activities section.
• B)added to net income in the operating activities section.
• C)shown as a cash outflow in the financing activities section.
• D)shown as a cash outflow in the investing activities section.