The Balance Sheets of Green Ltd Show $\begin{array}{lrr} &31 \text { December }\\& 2013 & 2014 \\\text { Current tax liability } & \$ 30000 & \$ 45000\end{array}$

question 34

Multiple Choice

The balance sheets of Green Ltd show: $\begin{array}{lrr} &31 \text { December }\\& 2013 & 2014 \\\text { Current tax liability } & \$ 30000 & \$ 45000\end{array}$
$\text { The income statement for the year ended } 31 \text { December } 2014 \text { shows: }$
Income tax expense $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 45000 What amount in respect of income tax will appear in the statement of cash flows for the year ended 31 December 2014,assuming tax is paid annually in arrears and there are no over or under provisions of tax.

• A)Nil
• B)$30 000
• C)$42 000
• D)$45 000

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Definitions:

Products Order

An order placed by a customer or company for specific goods or materials.

Emphasized

To give special importance or prominence to something within a particular context.

Direct Labor Hours

A measure of the work effort contributed by employees who are directly involved in manufacturing goods or providing services, essential for cost and efficiency analysis.

Constrained Resource

A factor of production that limits the output or growth of a process, such as limited raw materials, labor, or machine capacity.