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Question : Declaration of Interim Dividend 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 3rd Jan, 2024
Answer (1)
Team Careers360 5th Jan, 2024

Correct Answer: Outflow


Solution : Answer = Outflow

Declaration of interim dividend would result in an outflow of cash and cash equivalents. This is because when a company declares a dividend, it commits to distributing funds to its shareholders, leading to a reduction in the company's cash reserves. Interim dividend is declared is paid within 30 days of declaration.
Hence, the correct option is 2.

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