An extract from the trial balance of RRR Pty Ltd as at 30 June 2015 shows:
Income tax expense $20,000
If the income tax provided for at the end 2014 was $16,000 and taxation is paid in arrears in a lump sum,what amount will appear in the statement of cash flows for taxation paid by RRR Pty Ltd for the year ended 30 June 2015?

Question

Quizplus · Accepted Answer

The amount that will appear in the statement of cash flows for taxation paid by RRR Pty Ltd for the year ended 30 June 2015 is $16,000, as taxes are paid in arrears, meaning the tax expense recorded in the previous year (2014) is paid in the current year (2015).

An Extract from the Trial Balance of RRR Pty Ltd