An Extract from the Trial Balance of RRR Pty Ltd

question 23

Multiple Choice

An extract from the trial balance of RRR Pty Ltd as at 30 June 2018 shows: Income tax expense $20,000
If the income tax provided for at the end 2017 was $12,000 and taxation is paid in arrears in a lump sum, what amount will appear in the statement of cash flows for taxation paid by RRR Pty Ltd for the year ended 30 June 2018?

• A)$20,000.
• B)$12,000.
• C)$16,000.
• D)Nil.

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Definitions:

Best Interest

A principle that guides decisions by prioritizing the benefits and welfare of those affected over other considerations.

Society

A community of individuals living together and interacting under shared norms, values, and institutions.

Profit Maximizes

The technique a firm uses to determine the most profitable price and quantity of production.

Positive Profits

The financial gain that occurs when the total revenues earned by a firm exceed its total costs of production, indicating successful business operations.