On a statement of cash flows prepared using the direct method,cash paid for income taxes would be income tax expense minus
A) an increase in income taxes payable.
B) a decrease in income taxes payable.
C) beginning income taxes payable.
D) ending income taxes payable.

Question

Quizplus · Accepted Answer

On a statement of cash flows prepared using the direct method, cash paid for income taxes is calculated by subtracting any change in income taxes payable from income tax expense. Therefore, the correct answer is A, which represents income tax expense minus an increase in income taxes payable.

On a Statement of Cash Flows Prepared Using the Direct