At 1 September 2018, Cremona Limited had a taxation liability of £25,734. At 31 August 2019, the company's taxation liability stood at £28,321. The statement of profit or loss for the financial year ended 31 August 2019 showed an income tax charge for the year of £30,429. Based on this information, what figure for cash paid for taxation will appear in the statement of cash flows of Cremona Limited for the financial year ended 31 August 2019?

Question

Quizplus · Accepted Answer

The Answer of At 1 September 2018, Cremona Limited had a taxation liability of £25,734. At 31 August 2019, the company's taxation liability stood at £28,321. The statement of profit or loss for the financial year ended 31 August 2019 showed an income tax charge for the year of £30,429. Based on this information, what figure for cash paid for taxation will appear in the statement of cash flows of Cremona Limited for the financial year ended 31 August 2019?

At 1 September 2018, Cremona Limited Had a Taxation Liability