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Question

Which of the following would be considered a cash-flow item from a "financing" activity?


  1. A cash outflow to the government for taxes

  2. A cash outflow for payment of dividend

  3. A cash outflow to creditors

  4. A cash outflow to purchase fixed assets


Solution

The correct option is B

A cash outflow for payment of dividend


A cash outflow for payment of dividend  would be considered a cash-flow item from a "financing" activity

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