Bainbridge Company Uses the Direct Method in Determining Net Cash

question 77

Multiple Choice

Bainbridge Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $70,000. Income taxes payable were $25,000 at the beginning of the year and $18,000 at the end of the year. Cash payments for income taxes are

• A) $63,000.
• B) $70,000.
• C) $77,000.
• D) $88,000.

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Definitions:

Defamation

A false statement presented as fact that causes injury or damage to the reputation of the person or entity targeted by the statement.

Comparative Negligence

Comparative Negligence is a legal principle that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injuries.

Contributory Negligence

A legal doctrine where if the plaintiff in a negligence claim is found to be partly at fault for the incident, they may be barred from receiving compensation.

Wrongful Death

A legal term referring to a death caused by the negligence or misconduct of another person or entity.