When the Date of Declaration and the Payment Date Occur

question 3

True/False

When the date of declaration and the payment date occur in the same period,the amount of dividends shown on the statement of stockholders' equity and on the statement of cash flows will be equal.

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Definitions:

Indirect Method

An approach used in cash flow statement preparation, adjusting net income for non-cash transactions, deferrals, and accruals to calculate operating cash flow.

Accounts Receivable

Represents money owed to a company by its customers for goods or services provided on credit.

Sales

Revenue earned from the exchange of goods or services during a specific period.

Direct Approach

A method used in cash flow statements where cash receipts and payments are reported directly to calculate net cash from operating activities.