QUESTION 19 A company declared and paid a cash dividend The

QUESTION 19 A company declared and paid a cash dividend. The dividend would appear on the company\'s statement of cash flows as: O an addition to net income in order to arrive at net cash provided by operating activities under the indirect method. O a deduction from net income in order to arrive at net cash provided by operating activities under the indirect method. O a deduction under investing activities. O a deduction under financing activities.

Solution

Option D is the answer

Payment of Dividend is a financing activity. Payment results in the negative cash flow. And hence cash dividend paid would appear as a deduction from Financing Activities