CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Cash dividends of $48,500 were declared. The beginning and ending balance of the cash dividends payable account was $8,000 and $10,500, respectively. On the statement of cash flows, the cash dividend activity would be reported as which of the following?
A. Financing activity of $46,000
B. Financing activity of $48,500
C. Investing activity of $48,500
Explanation: The dividends declared added to the beginning balance of dividends payable is a total liability of $56,500. The ending balance of dividends payable, $10,500, means that $46,000 of the dividends declared were paid.

User Contributed Comments 3

User Comment
Shelton Declared Div $48.5k = Paid X + Unpaid (EB.A/P $10.5k - BB.A/P $8k) => X=$46k
todolist declared dividend is included in the dividend payable account, therefore included in the calculation
azramirza beg+declared-ending=46000
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