(Appendix 14A) Van Beeber Corporation's Comparative Balance Sheet and Income

question 32

Multiple Choice

(Appendix 14A) Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:
The company declared and paid $49,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.
-On the statement of cash flows,the income tax expense adjusted to a cash basis would be:

• A) $39,000
• B) $69,000
• C) $9,000
• D) $25,000

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Definitions:

Negligence

The absence of the caution a typically careful individual would use in similar circumstances.

Grossly Negligent

Refers to a severe lack of care or action that significantly breaches the duty of care owed to another, resulting in substantial harm or risk.

Financial Irregularities

Unusual or improper financial transactions that may indicate mismanagement, fraud, or violations of regulations.

Contradictory Evidence

Information or data that directly opposes or disputes the claims or findings presented in a specific context.