Spa Company Uses the Direct Method in Determining Net Cash

question 114

Multiple Choice

Spa Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $85000. Income taxes payable were $35000 at the beginning of the year and $20000 at the end of the year. Cash payments for income taxes are

• A) $70000.
• B) $85000.
• C) $100000.
• D) $140000.

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Definitions:

Viral

Pertaining to a virus, or in a broader sense, content that spreads rapidly through the internet or other media.

Bacterial

Pertaining to bacteria, which are single-celled, microscopic organisms that can be beneficial, neutral, or pathogenic to humans.

Monozygotic Twins

Identical twins that originate from a single fertilized egg, sharing the same genetic material.

Fertilization Process

The union of a male sperm cell and a female ovum (egg) to form a zygote, marking the beginning of pregnancy.