Dividends Received from an Investment Is Classified as A(an)__________ Cash

question 4

Multiple Choice

Dividends received from an investment is classified as a(an) __________ cash flow,and paying dividends on stock issued is classified as a(an) ____________ cash flow on the Statement of Cash Flows.

• A) Operating; Operating.
• B) Operating; Financing.
• C) Financing; Operating.
• D) Investing; Financing.

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Definitions:

Purchase Discounts

Purchase discounts are reductions in price given by the supplier to the buyer for early payment or payment within a specified period.

Credit Sales

Transactions where the customer purchases goods or services on credit and pays the seller at a later date.

Bank Credit Cards

Payment cards issued by banks that allow cardholders to borrow funds within a pre-approved limit for purchases or cash advances.

Freight-In

The cost associated with transporting raw materials or goods into a facility, typically considered as part of the inventory cost.