Severn Corporation Prepares Its Statement of Cash Flows Using the Direct

question 10

Multiple Choice

Severn Corporation prepares its statement of cash flows using the direct method.Last year,Severn reported Income Tax Expense of $27,000.At the beginning of last year,Severn had a $2,000 balance in the Income Taxes Payable account.At the end of last year,Severn had a $5,000 balance in the account.On its statement of cash flows for last year,what amount should Severn have shown for its Income Tax Expense adjusted to a cash basis (i.e. ,income taxes paid) ?

• A)$20,000
• B)$22,000
• C)$24,000
• D)$30,000

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Definitions:

Self-esteem

An individual's subjective evaluation of their own worth or value.

Work Environments

The physical and social settings in which people carry out their job duties, including factors like office layout, culture, policies, and coworkers.

Positive Feedback

A response mechanism that reinforces a particular behavior or performance, encouraging its recurrence by highlighting its benefits or successes.

Inflated Self-esteem

An excessively high regard for one's abilities or worth, often not aligned with reality and potentially leading to negative consequences.