Question

In: Accounting

Which of the following would NOT be reported in the Operating Section of the Statement of Cash Flows when using the Indirect Method?

Which of the following would NOT be reported in the Operating Section of the Statement of Cash Flows when using the Indirect Method?

Dividends received

Interest paid on a note

Loss on sale of equipment

Dividends paid

Solutions

Expert Solution

Correct answer is Option #4 "Dividends paid" would not be reported under the Operating section of statement of cash flows when using indirect method.

In fact, dividend paid is shown under Financing activities section as a cash outflow.

ekkarill92 answered 2 years ago
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