An Extract from the Trial Balance of RRR Ltd as at 30

question 38

Multiple Choice

An extract from the trial balance of RRR Ltd as at 30 June 2011 shows: Income tax expense $20,000 If the income tax provided for at the end of 2013 was $16,000 and taxation is paid in arrears in a lump sum, what amount will appear in the cash flow statement for taxation paid by RRR Ltd for the year ended 30 June 2014?

• A) $20,000
• B) $16,000
• C) nil
• D) $12,000

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Definitions:

Wisdom

The ability to think and act using knowledge, experience, understanding, common sense, and insight.

Ethics

A branch of philosophy dealing with moral principles and values governing individual and group behavior.

Good

An item or product that is manufactured or produced for sale, or anything that serves a need or desire.

Right

A moral or legal entitlement to have or obtain something or to act in a certain way.