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Question

A dividend proposed in the previous year and paid during the current year results in the cash from activity.

A
investing
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B
inflow
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C
financing
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D
outflow
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Solution

The correct options are
C financing
D outflow
Proposed dividend is the dividend declared or proposed to be distributed among the shareholders of the company during a financial year which will be paid in the next financial year. A dividend proposed in the previous year and paid during the current year results in financing cash outflow.

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