A Payment of Dividends Decreases Which Section on the Statement

question 116

Multiple Choice

A payment of dividends decreases which section on the statement of cash flows?

• A) Operating activities
• B) Investing activities
• C) Financing activities
• D) None of these

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Definitions:

Chapter 7

A provision under the U.S. Bankruptcy Code that deals with liquidation, where an individual's or company's assets are sold to pay off debts.

Bankruptcy Code

The set of laws that governs the process of bankruptcy in the United States, which allows individuals and businesses to discharge their debts or reorganize their financial obligations.

Automatic Stay

A legal provision that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

Secured Creditors

Creditors who have a legal right to specific assets of a debtor as collateral for the debts owed to them.