QUESTION 1 3 points Save Answer A company issues dividends to its stockholders.

Question

QUESTION 1 3 points Save Answer A company issues dividends to its stockholders. This outflow of cash would appear in the following section of the statement of cash flows: Operating Reporting Investing Financing QUESTION 2 3 points Save Answer A company pays off a note payable to a bank. This outflow of cash would appear in the following section of the statement of cash flows: Operating O Reporting O Investing O Financing QUESTION 3 3 points Save Answer A company pays $100 worth of interest expense to a bank. This outflow of cash would appear in the following section of the statement of cash flows: Operating Reporting O Investing O Financing

Explanation / Answer

Distribution of Dividend is Financing Activity as it is related to the finance of the company and is not an operating activity. It is a Financing Activity as paid-off the loan and is considered to be Financing Activity. It is a Financing Activity as Loan is a Financing activity and Interest Expense is also considered to be Financing Activity It is a Investing activity as purchase of computers is an asset and asset comes into investing Activities Reporting as CFS contains Operating, Investing and Financing Activities. False, As Operating Activity is the one who is different in Direct and Indirect method, all investing and Financing are the same. It is a Investing Activities as it is a short term investment and interest received is considered to be Investing Activity

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