For each of the following, identify whether it would be disclosed as an operating (O), financing (F), or investing (I) activity on the statement of cash flows under the indirect method.
Definitions:
Cash Dividend
A payment made by a company out of its profits to shareholders, usually in the form of cash.
Common Stock
The most prevalent form of equity ownership, representing shares in the ownership of a company.
Dividend Decision
The decision by management regarding the portion of earnings paid to shareholders as dividends. The alternative is to retain the money, investing it in the company for future growth.
Cash Dividends
Distributions made to shareholders by a company, often in the form of profit sharing.
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