Which of the Following Is the Correct Equation to Use

question 40

Multiple Choice

Which of the following is the correct equation to use when calculating cash payments for income taxes under the direct method?

• A)Net income - Decrease in income taxes payable or + Increase in income taxes payable
• B)Net income + Decrease in income taxes payable or - Increase in income taxes payable
• C)Income tax expense - Decrease in income taxes payable or + Increase in income taxes payable
• D)Income tax expense - Decrease in accounts receivable or + Increase in accounts receivable

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Definitions:

Heredity

The genetic transfer of characteristics, whether physical or mental, from one generation to the next.

Experience

Direct observation of or participation in events as a basis of knowledge, or the practical contact with and observation of facts or events.

Scientific Method

A systematic process for gathering and testing information used in science to explore observations and answer questions.

Subjectivity

The characteristic of relying on or being affected by one's own emotions, preferences, or views instead of objective realities.