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
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.