Answer
(d) financing activities
Work Step by Step
Cash dividends paid are outflows to owners and relate to financing the company, not its operations or investments.
Financing activities include:
- Issuing or repurchasing stock
- Borrowing or repaying debt
- Paying dividends
Thus, dividends appear as a cash outflow under financing activities on the statement of cash flows.
Correct answer: (d) financing activities.
