Classify Dividend paid by a Financing Company as operating,investing or financing activity - Accountancy - Cash Flow Statement

Question

Classify Dividend paid by a Financing Company as
operating,investing or financing activity

Shruti Mishra · Accepted Answer

Dear Student,
Dividend paid by the financing company is classified as Cash Flow
from Financing Company because Shares are the source of the
finance, therefore, irrespective of the nature of enterprise (i e
weather financing or non-financing), Dividend paid is shown in the
Cash Flow from Financing Activities

Regards

Classify Dividend paid by a Financing Company as operating,investing or financing activity.