The Amount of Income Tax Previously Estimated Now Paid

question 7

Multiple Choice

The amount of income tax previously estimated now paid. The correct journal entry is:

• A) DR Taxes payable
• CR Income tax expense
• B) DR Income tax expense
• CR Taxes payable
• C) DR Income tax expense
• CR Cash at bank
• D) DR Taxes payable
• CR Cash at bank

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Definitions:

Industry

A sector of the economy that includes all businesses involved in the production or processing of goods, provision of services, or related activities.

Market System

In this economic structure, supply and demand forces directly influence decisions around investment, production capacity, and distribution methods, with the price points of goods and services being freely determined in a competitive price system.

Expanding Industry

An industry or sector experiencing significant growth in terms of output, sales, or number of participants.

Resource Prices

The costs associated with acquiring raw materials or inputs used in the production of goods and services.