In a Statement of Cash Flows, a Change in an Income

question 126

Multiple Choice

In a statement of cash flows, a change in an income taxes payable account would be recorded in the:

• A) operating activities section.
• B) financing activities section.
• C) investing activities section.
• D) stockholders' equity section.

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Definitions:

Debtor

An individual or organization that owes money or services to another entity, known as the creditor.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay their outstanding debts, allowing for the liquidation or reorganization of assets to pay off creditors.

Voidable Preference

A legal term referring to a payment or asset transfer made by a debtor that can be invalidated by a bankruptcy trustee under certain conditions.

Insider

An individual with access to confidential information about a company, often an employee or executive, which can affect financial decisions or market performance.