Income Tax Expense Was $200 000 for the Year

question 55

Multiple Choice

Income tax expense was $200 000 for the year.Income tax payable was $20 000 at the beginning and $30 000 at the end of the year.Cash payment for income tax reported on the cash flow statement using the direct method is:

• A) $200 000.
• B) $190 000.
• C) $220 000.
• D) $230 000.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or activity within a company.

Long Run

A time period in economics during which all inputs or factors of production can be varied, and no costs are fixed.

Expenditures

Money spent on goods, services, or other expenses by individuals, businesses, or governments.

Long Run Cost Curve

A graphical representation that shows the minimum cost at which any given level of output can be produced in the long term, once all inputs are variable.