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You pay a dividend, what happens on the cash flow statement and in which section?

 

1. Cash increases - Investing section

 

2. Cash increases - Operating section

 

3. Cash decreases - Financing section

 

4. Cash increases - Financing section

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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/06/15
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option3 is the right answer.

Wasim khan wazir
by Wasim khan wazir , Finance Specialist , Mott Macdonald

Option3. Is right one..........,

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Dividend payments will decrease Cash in the Financing Section. Option3 is the Answer.

mehfooz alam khan habib khan
by mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Option3: Cash decrease financial section is right answer.

Farzain Javed Anjum
by Farzain Javed Anjum , Senior Accountant/Acting Chief Accountant , Al Eatesam Modern Marketing Compnay

The correct answer is Option3

Ajay Dutt
by Ajay Dutt , Senior Accountant , Concept Zone Group of Companies

The answer is option3. Cash decreases financing section.

Santhosh Govindan
by Santhosh Govindan , ACCOUNTANT & ADMIN , TRUETEK ADVERTISING LLC

Decrease in cash flow management 

Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

3. Cash decreases - Financing section..............................

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer3 is the correct answer

Sanjay Kumar Jangir
by Sanjay Kumar Jangir , Finance Executive , Alchemy Stones India

Cash decreases - Financing section. Company is paying the cash as dividend to its stock holder

Abbas  Bharmal CA Inter M com Looking for New
by Abbas Bharmal CA Inter M com Looking for New , Senior Accountant , Msheireb Properties

oprtion3 cash decreases-financing section

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