When calculating the net cash provided by operating activities, an increase in income taxes payable is:
A)subtracted from the net cash amount after other calculations have been made.
B)subtracted from the net income.
C)added to the net income.
D)not used in the calculation.

Question

Quizplus · Accepted Answer

An increase in income taxes payable is added to the net income because it represents an expense that has been incurred but not yet paid, thus increasing the cash available from operating activities.

When Calculating the Net Cash Provided by Operating Activities, an Increase