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Cash flow statement
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Dividend paid is given in additional information... How should i account it... In some answers they have added to net profit in some answers they didn't add it to net profit in operating activities... Which is correct approach...
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Best Answer
It depends on the question and the way the sentence is structured. If net profit is already available, you do not need to add it to net profit. If profit and loss balance is given, then you will adjust dividend to arrive at profits earned during the year.
https://youtu.be/BCujphqmx64 You can have a look at this video for understanding in detail the cashflow preparation under indirect method.
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