On the cash flow statement, which of the following would equal cash paid for income taxes?
A)Income taxes payable plus change in cash
B)Income taxes expense plus ending balance in income taxes payable
C)Income taxes expense plus beginning balance in income taxes payable
D)Income taxes expense plus change in income taxes payable

Question

Quizplus · Accepted Answer

Cash paid for income taxes would be equivalent to income taxes expense plus the change in income taxes payable, as this reflects the actual outflow of cash for income taxes during the period. Option A includes the change in cash, which is not related to income taxes, while options B and C both involve the balance in income taxes payable, which does not necessarily reflect the actual payment of income taxes during the period.

On the Cash Flow Statement, Which of the Following Would