Question : Declaration of final dividend Rs. 1,25,000; would result in inflow/outflow/no flow of Cash and Cash Equivalents:

Option 1: Inflow

Option 2: Outflow

Option 3: No flow

Option 4: None of the above


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Outflow


Solution : Answer = Outflow

The declaration of a final dividend of Rs 1,25,000 would result in an outflow of cash and cash equivalents. This is because dividends represent a distribution of profits to shareholders, resulting in a cash outflow from the company's coffers to its shareholders. Declaration of the Final dividend means shareholders have approved the dividend, declared dividend is paid within 30 days of declaration.
Hence, the correct option is 2.

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