Reven Corporation Prepares Its Statement of Cash Flows Using the Direct

question 33

Multiple Choice

Reven Corporation prepares its statement of cash flows using the direct method. Last year, Reven reported Income Tax Expense of $25,000. At the beginning of last year, Reven had a $5,000 balance in the Income Taxes Payable account. At the end of last year, Reven had a $9,000 balance in the account. On its statement of cash flows for last year, what amount should Reven have shown for its Income Tax Expense adjusted to a cash basis (i.e., income taxes paid) ?

• A) $29,000
• B) $21,000
• C) $25,000
• D) $4,000

Identify strategies for creating restorative places and the importance of environmental ambiance.

Understand the concept of crowding and various theories associated with it.

Define and distinguish between different types of territories and their significance.

Recognize the role of personal space and territoriality in social interactions.

---

Definitions:

Factory Overhead

The total of all costs that are incurred to manufacture products, excluding the direct costs of labor and materials.

Sales Supplies Used

Pertains to the total cost of sales or promotional materials consumed or utilized during a particular period.

Selling and Administrative Expense

Selling and administrative expense includes costs related to the selling of products and the management of the business, excluding production costs.

Factory Overhead

Costs tied to manufacturing processes, excluding those for direct labor and materials.