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dividend will affect the cash flow when actual cash is paid and not at the time of declaration of dividend.
nowhere on the statement
increase or decrease in unclaimed dividend is part of cash flow from financing activities.
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows
No, it is not a cash flow, and it also is not a significant fiancing or investing activity.
Dividends are reported on the income statement?
dividend paid belongs to financing activities in cash flow statement as dividend is paid to stockholders who invests in company.
If stock dividend is received then it will be shown under cash flows from investing activities while if stock dividend is paid then it is shown under cash flow from financing activities.
other income and they are found in the income statement
decrease current ratio
A declared cash dividend is recorded by debiting the dividend account and crediting the dividend payable account.