Income Taxes Owed to the Federal Government Would Be Classified

question 104

Multiple Choice

Income taxes owed to the federal government would be classified as a(n) :

• A)expense on the Income Statement.
• B)financing activity on the Statement of Cash Flows.
• C)current asset on the Balance Sheet.
• D)current liability on the Balance Sheet.

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Definitions:

Legally Sufficient

This refers to a condition or document meeting all legal requirements and standards to be considered valid or enforceable.

Consideration

Consideration in contract law refers to something of value promised to another when making a contract, which can be a service, money, or an object.

Bilateral Contract

A type of contract involving two parties where each party makes a promise or set of promises to the other.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.