Payment of a cash dividendi are typically reported in the financing activities section of the statement of cash flows. It’s important for accountants.
Financing activities are transactions involving long-term obligations, owner equity, and adjustments to short-term borrowings are referred to as financing operations. For non-trading obligations like long-term loans, bonds due, etc., these operations entail the movement of cash and cash equivalents between the firm and its sources of financing, i.e., the investors and creditors. The money that the company received or spent to finance its operations is referred to as cash flow from financing activities. On a company's statement of cash flows, it is one of three categories, the other two being operational and investing operations. The cash flow between a company's owners and creditors is referred to as financing operations in the cash flow statement. It focuses on how the company obtains funding and reimburses its investors.
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