What Does the Tax Payment Appearing in the Statement of Cash

question 13

Multiple Choice

What does the tax payment appearing in the statement of cash flows of a company reflect?

• A)a prepayment for next year's tax liability.
• B)last year's tax liability (due to the lag in payment to tax office).
• C)this year's tax liability.
• D)an estimate of this year's tax liability.

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Definitions:

Making Part

The process or activities involved in the manufacturing or creation of parts or components that are then assembled into final products.

Idle Capacity

The unused portion of a company's production or operational capacity, which indicates that not all resources are being fully utilized.

Financial Advantage

A benefit that gives an individual or business a better financial position compared to others.

Special Discounted Price

This is a temporary reduction in the selling price of goods or services, often used to attract customers or promote sales.