Identify which of the following adjustments to after- tax operating income is used to approximate cash income.
A) expensing research and development costs
B) using taxes paid rather than tax expense
C) using LIFO valuation
D) deducting interest payable

Question

Quizplus · Accepted Answer

Using taxes paid rather than tax expense adjusts for the actual cash outflow related to taxes, providing a more accurate approximation of cash income.

Identify Which of the Following Adjustments to After- Tax Operating