Even if the firm uses the indirect method for the statement of cash flows, it must disclose the total amount of income taxes paid during the period.

Name: Even if the firm uses the indirect method for the statement of cash flows, it must disclose the total amount of income taxes paid during the period.
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Question

Quizplus · Accepted Answer

The indirect method requires firms to disclose the total amount of income taxes paid, as it is a necessary reconciliation item for understanding cash flows from operating activities.

Even If the Firm Uses the Indirect Method for the Statement