31、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
River Company paid cash dividends during the year. What is the most likely effect of this transaction on the statement of cash flows?

A. A cash outflow in cash flow from operations.

B. A cash outflow in cash flow from investing activities.

C. A cash outflow in cash flow from financing activities.

D. No effect, because dividends are not reported on the statement of cash flows.

[此贴子已经被作者于2008-11-7 14:14:31编辑过]

31、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
River Company paid cash dividends during the year. What is the most likely effect of this transaction on the statement of cash flows?

A. A cash outflow in cash flow from operations.

B. A cash outflow in cash flow from investing activities.

C. A cash outflow in cash flow from financing activities.

D. No effect, because dividends are not reported on the statement of cash flows.

  
Correct answer = C

"Understanding the Cash Flow Statement," Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn
2008 Modular Level I, Vol. 3, pp. 273-274
Study Session 8-34-a
compare and contrast cash flows from operating, investing, and financing activities and classify cash flow items as relating to one of these three categories, given a description of the items
Cash dividends paid are reported as a cash outflow in the cash flow from financing activities section on the statement of cash flows. 

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