Question

A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:Multiple ChoiceAn increase in cash flows from investing activitiesA decrease in cash flows from investing activitiesA decrease in cash flows from financing activitiesAn increase in cash flows from financing activitiesA decrease in cash flows from operating activities

Answer 1

From this statement, the cash flow statement is written as: A decrease in cash flow from funding activities.

Where when dividends are paid out directly affects cash flow or in other words, cash flow decreases.

Further explanation

Dividends in accounting represent profits or profits received by shareholders from the profits of the company is running a business for a period. Not all profits obtained by the company will be divided into dividends, but some will be used again by the company as capital to enlarge the business.

In this case dividends are the profits of the company which the company decided to distribute to shareholders. Shareholders receive dividends in one piece, not taxed at all. But if the company suffers losses, the company will not be able to pay or distribute dividends to shareholders.

Here are some things that are included in the definition of dividends:

• profit-sharing, directly or indirectly, by name and in any form
• repayment due to liquidation that exceeds the amount of paid-up capital
• bonus share giving made without deposit including bonus shares originating from additional capital stock capitalization
• profit-sharing in the form of shares
• the recording of additional capital made without deposits

There are 6 types of dividends known in accounting, including:

• Cash dividends: dividends given by companies in the form of cash. In this case, cash can be distributed directly or through bank intermediaries. The company must ensure in advance that the cash to be distributed is sufficient and following the dividend announcement that has been previously distributed.
• Property dividends: dividends distributed in the form of objects/goods/merchandise.
• Stock dividends: dividends in the form of shares issued by a company.
• Stock right: dividend in the form of a letter to buy new shares issued by the company at a cheaper price.
• Dividend script: in the form of a company's written promise to distribute dividends later in the form of promissory notes.
• Liquidating dividends: dividends given by a company that will liquidate the company and returns all net assets to shareholders in cash.

Learn more

Dividends brainly.com/question/7636713

Cash flow brainly.com/question/10776890

Details

Class: High School

Subject: Business

Keyword: Dividend.

Answer 2

Answer:

A decrease in cash flows from financing activities

Explanation:

When cash dividend is paid,

It is an outflow of cash as paid, therefore it will decrease the cash flows.

Further dividend is paid to equity, or preference capital raised for business, which is a financing activity.

Therefore, a cash dividend paid to shareholders will result in decrease in cash flow from financing activities.

Whereas cash dividend received is investing activity.

Final Answer

A decrease in cash flows from financing activities.