Use the Following Information to Calculate Cash Paid for Income

question 139

Multiple Choice

Use the following information to calculate cash paid for income taxes: Income tax expense $50,000
Income tax payable, January 1 9,000
Income tax payable, December 31 7,000

• A) $57,000.
• B) $50,000.
• C) $59,000.
• D) $52,000.
• E) $48,000.

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Definitions:

Petty Cash

A small amount of cash on hand that is used for paying small expenses in an organization.

Cash Short And Over

An accounting term that represents the discrepancies between the recorded amount of cash and the actual amount of cash available, indicating either a surplus or a shortfall.

Sales

Revenue generated from the selling of goods or services.

Invoices

Documents issued by a seller to a buyer that specify the goods or services provided, their prices, and payment terms.