How is the payment of dividends to shareholders classified on the statement of cash flows?Group of answer choices

The payment of dividends to shareholders is classified under the "Financing Activities" section of the statement of cash flows. This section includes transactions that result in changes in the size and composition of the owners' equity and borrowings of the entity. Since dividends are paid out from the company's earnings to its shareholders, it is considered a financing activity.

Here are the steps to find it on the statement of cash flows:

1. Locate the "Statement of Cash Flows" in the company's annual report or SEC filings.
2. Look for the section titled "Cash Flows from Financing Activities."
3. Under this section, look for a line item that says "Dividends Paid" or something similar. This line item represents the cash paid out to shareholders as dividends during the period.

Remember, a negative number typically represents a cash outflow, so don't be surprised if you see a negative number for dividends paid. This simply means that cash has left the company to be distributed to shareholders.