On a statement of cash flows prepared using the direct method,if Income Taxes Payable decreased during the accounting period,cash payments for taxes will be less than the expense shown on the income statement.

Question

Quizplus · Accepted Answer

If Income Taxes Payable decreased, it means that more cash was paid out than the tax expense recognized, indicating cash payments for taxes were greater than the expense shown on the income statement.

On a Statement of Cash Flows Prepared Using the Direct