Imelda Reports Only Half the Cash from the Vending Machines

question 30

Multiple Choice

Imelda reports only half the cash from the vending machines on her cash flow statement and income tax returns. Her purpose in doing so is to

• A) reduce her income tax liability.
• B) increase her net income on the financial statement.
• C) retain the cash for reinvestment in the business.
• D) make the business more attractive to a buyer.