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:

Competitive Price

The market price at which goods are sold in a perfectly competitive market, where no single buyer or seller can influence the price.

Fixed-Coefficient Technology

A production process where input ratios are constant and cannot be substituted for one another in the production process.

Demand Function

A mathematical relationship that describes how the quantity demanded of a good or service varies with changes in its price, and possibly other factors.

Horizontal Labor Supply Curve

A graphical representation suggesting that a worker's willingness to work does not change regardless of wage increases over a certain range.