Income Tax Payable Appears on The

question 34

Multiple Choice

Income tax payable appears on the:

• A) tax return.
• B) statement of stockholders' equity.
• C) income statement.
• D) balance sheet.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and stockholders' equity at a specific point in time, providing a snapshot of its financial condition.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Short-Term Investments

Assets that are expected to be converted into cash or sold within one year or the operating cycle, whichever is longer.

Internal Auditors

Professional auditors who are employed by an organization to perform auditing and analysis of its operations, systems, and financial activities, ensuring compliance and identifying improvements.