In which section(s) of the cash flow statement do interest paid and dividends paid appear, respectively?

Option E is the right answer.

( A)  is the Correct answer

Answer Add by : Mohamed sajeer Abudl Maleek Accountant 

correct answer is E

both option A and E are correct

A and E are correct, C is correct too but is practically irrelevant. According to IAS-7 paragraph33, paid interest can be classified as an either operating or financing activity, except for a financial institution, e.g. a bank, where it is an operating activity. The correct answer would only be E then, for a financial institution, that is.

Paying dividends is typically a financing activity, but may also be classified as an operating one according to paragraph34 of the same international standard.

By the way, in practice the nature of interest plays a role in its classification. E.g. interest on overdrafts is practically only an operating activity, unlike interest on loans that many companies prefer classifying as financing.

Regardless of how the entity classifies these activities, it is essential that the classification is consistent.

Correct answer is A.........................

D. Investing              Investing