Assume Tax Is Paid Annually in a Lump Sum

question 16

Multiple Choice

Assume tax is paid annually in a lump sum. The beginning balance in the current tax liability account is $70 000 and the ending balance is $79 000. There was no under or over provision of tax for the year. What is the amount of tax paid to be included in the statement of cash flows for the period?

• A) Nil
• B) $70 000
• C) $80 000
• D) $79 000

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Definitions:

Chronological Context

Refers to understanding events or information in the order that they occurred, considering the timing and sequence for clarity and analysis.

Social Context

The environment of people, cultures, institutions, and norms that surround and influence the behavior, actions, and interpretations of individuals or groups.

Physical Context

The tangible or environmental conditions in which an event occurs or an object exists.

Adhocracy Culture

An organizational culture emphasizing flexibility, employee empowerment, and an emphasis on innovation rather than hierarchical structure.