Which of the following will occur in a statement of cash flows as a result of paying 89sh dividends?
A web user asks, Which of the following will occur in a statement of cash flows as a result of paying 89sh dividends?
1) Cash flows from operations will increase.
2) Cash flows from investments will decrease.
3) Cash flows from financing will decrease.
4) Cash balances will not be affected.
Can you help them out? Post your advice!
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Posted in QnA
Distribution of dividends is considered a financing activity and as such, causes a decrease in cash flows from financing activities. The answer is #3.