Asked by Maria Mendez on Apr 27, 2024

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The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Schedule of noncash investing or financing activity.
E) This is not reported on the statement of cash flows.

Cash Dividends

A distribution of profits by a corporation to its shareholders in the form of cash.

Operating Activities

Transactions and other events related to the day-to-day function of a business, typically involving revenue and expense activities directly affecting cash flow.

Investments In Securities

Financial assets such as stocks, bonds, or mutual funds purchased with the intent of generating income or appreciating in value.

  • Ascertain the classification of cash receipts and disbursements in accordance with the cash flow statement.
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KP
Karmdeep PurewalMay 02, 2024
Final Answer :
A
Explanation :
Receipt of cash dividends from investments in securities is typically classified under operating activities in the statement of cash flows, as it is considered part of the cash inflows from the company's primary revenue-generating activities.