What does the tax payment appearing in the statement of cash flows of a company reflect?
A)A prepayment for next year's tax liability
B)Last year's tax liability (due to the lag in payment to tax office)
C)This year's tax liability
D)An estimate of this year's tax liability

Question

Quizplus · Accepted Answer

The tax payment appearing in the statement of cash flows of a company reflects last year's tax liability, as there is typically a lag in payment to the tax office.

What Does the Tax Payment Appearing in the Statement of Cash