how-might-classifying-dividends-paid-as-operating-activities-under-ifrs-affect-a

Question

How might classifying dividends paid as operating activities under IFRS affect a company's financial ratios?

Accepted Answer

It could decrease the operating cash flow ratio, affecting liquidity analysis.

Answer

It could increase the return on assets ratio, affecting profitability analysis.

Answer

It could increase the debt-to-equity ratio, affecting solvency analysis.

Answer

It would have no effect on financial ratios.