Even if the firm uses the indirect method,it must disclose the total amounts of income taxes paid during the period.

Question

Quizplus · Accepted Answer

According to the generally accepted accounting principles (GAAP), firms using the indirect method are required to disclose the total amounts of income taxes paid during the period in the statement of cash flows. This information is important for stakeholders to understand the cash flows related to income taxes and the impact of taxes on the company's financial performance.

Even If the Firm Uses the Indirect Method,it Must Disclose