Income tax expense minus the decrease in income taxes payable equals cash paid for income taxes.

Name: Income tax expense minus the decrease in income taxes payable equals cash paid for income taxes.
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Question

Quizplus · Accepted Answer

Income tax expense minus the decrease in income taxes payable does not directly equal cash paid for income taxes. The correct formula to find cash paid for income taxes is: Income tax expense adjusted for the change in deferred income taxes and the change in income taxes payable.

Income Tax Expense Minus the Decrease in Income Taxes Payable