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easyMCQCUET Accountancy 2025 15 May Shift 12026CUET Accountancy
1 mark

Dividend paid by a company to its shareholder is classified as which type of activity under cash flow statement?

  1. A
    Cash flow from operating activities
  2. B
    Cash flow from investing activities
  3. C
    Cash flow from financing activities
  4. D
    Cash flow from extraordinary activities

Solution & Step-by-step Explanation

Financing activities are actions that alter the scale and setup of a company’s paid-up equity capital and long-term borrowing lines. Paying dividends directly rewards equity providers for their capital contribution, meaning it is classified under Cash flow from financing activities.

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Dividend paid by a company to its shareholder is classified as which type of activity under cash flow statement?
A
Cash flow from operating activities
B
Cash flow from investing activities
C
Cash flow from financing activities
D
Cash flow from extraordinary activities

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