Sophia Finance UNIT 1 — MILESTONE 1 2025/2026
Under GAAP, how would dividends paid to
company stockholders be accounted for on the
statement of cash flows?
●
●As a decrease in
cash flow from
investment
●As an increase in
cash flow from
financing
As a decrease in
cash flow from
financing
●
As an increase in
cash flow from
operations
RATIONALE
Dividend payments are considered a financial
transaction and would be a decrease in cash
flow.
Report an issue with this question
If a balance sheet shows $4 million in current
assets, $7 million in long-term assets, $2
million in current liabilities and $6 million in
long-term liabilities, what is the company's net
working capital?

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