Originally Posted by RenaB
Originally Posted by MTS
Once again, DECLARED is not PAID.
I agree, but then it says later on cash paid. It is worded very funky. This is why I let them know that I am not sure I am reading the question correctly.
I agree back.
And I think the funky wording is intentional. ;-)
iow, you would put in the amount paid out in cash for dividends.
If there were any. ;-)
At least that's the way I'm reading it.
A Declared Dividend would have no effect on cash flow as no cash went out the door.
Yet.
If you didn't adjust for the Dividends Payable on your cash flow statement, then you wouldn't have to for the hit to Dividends Declared or R/E acct (depending on how it was booked in the R/E section).