Addams Corporation paid cash dividends totaling $75,000 during its most recent f

Question

Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addam's statement of cash flows?

In operating activities as a source of funds.

In investing activities as a source of funds.

In investing activities as a use of funds.

In financing activities as a source of funds.

In financing activities as a use of funds.

In operating activities as a source of funds.

In investing activities as a source of funds.

In investing activities as a use of funds.

In financing activities as a source of funds.

In financing activities as a use of funds.

Explanation / Answer

Correct option is " 'E' -In Financing Activites as a use of fund.

Business raise money from Investors so as to meet its financial requirement /needs ,Investors in return expect some return on it in the form of dividend ,so dividend paid is a financing activity and since it is paid it is use of funds.

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