To determine cash payments for income taxes for the statement of cash flows using the direct method, an increase in income taxes payable is added to the income tax expense.

Question

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To determine cash payments for income taxes for the statement of cash flows using the direct method, an increase in income taxes payable would be subtracted from the income tax expense, not added, to reflect the portion of the expense not yet paid in cash.

To Determine Cash Payments for Income Taxes for the Statement