If taxes payable increased this year over last year's ending balance,cash payments to the government this year would be
A)Equal to tax expense for the period
B)Greater than tax expense for the period
C)Less than tax expense for the period
D)Not enough information to determine

Question

Quizplus · Accepted Answer

If taxes payable increased, it means that not all of the tax expense was paid in cash, so cash payments would be less than the tax expense.

If Taxes Payable Increased This Year Over Last Year's Ending