In 2014,a Company Paid $4,500 Which It Owed from Its

question 105

Multiple Choice

In 2014,a company paid $4,500 which it owed from its 2013 income tax liability and $30,000 for its 2014 tax liability.The company still owes $6,000 at year-end.How much should the company report as cash paid for income taxes on its 2014 statement of cash flows,using the direct method?

• A)$34,500
• B)$40,500
• C)$30,000
• D)$3,500

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Definitions:

Automatic Processing

refers to the unconscious encoding of incidental information, such as space, time, and frequency, and of well-learned information, such as word meanings.

Effortful Processing

A type of memory encoding that requires attention and conscious effort in order to encode information.

Two-Track Mind

The concept that the human mind operates both consciously and unconsciously at the same time.

Effortful Processing

A type of memory encoding that requires attention and conscious effort, as opposed to automatic processing.