A company's Income Tax Payable account decreased from $22 million to $21 million during the year. If its income tax expense was $120 million, what would be shown as cash paid for income taxes under the direct method? Multiple Choice A cash outflow of $120 million. A cash outflow of $121 million. A cash outflow of $119 million. A cash outflow of $21 million.
A company's Income Tax Payable account decreased from $22 million to $21 million during the year. If its income tax expense was $120 million, what would be shown as cash paid for income taxes under the direct method? Multiple Choice A cash outflow of $120 million. A cash outflow of $121 million. A cash outflow of $119 million. A cash outflow of $21 million.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company's Income Tax Payable account decreased from $22 million to $21 million during the year. If its income tax expense was $120 million, what would be shown as cash paid for income taxes under the direct method?
Multiple Choice
-
A
cash outflow of $120 million. -
A cash outflow of $121 million.
-
A cash outflow of $119 million.
-
A cash outflow of $21 million.
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