CIMA BA3 · Chapter 12 · Question 4 of 10
A company's current tax liability was $8,200 at the start of the year and $9,700 at the end. The tax charge in the statement of profit or loss was $11,500. How much tax was paid during the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $10,000
Explanation
Tax paid = opening liability + charge for the year - closing liability = $8,200 + $11,500 - $9,700 = $10,000.
More Statement of cash flows (IAS 7) MCQs
- Q6Which of the following is a cash flow from investing activities under IAS 7?
- Q7A company's share capital increased from $50,000 to $80,000 during the year and its share premium from $20,000 to $28,000. During the year…
- Q8A company sells a machine at a profit. How is this reflected in the statement of cash flows prepared using the indirect method?
- Q9Using the indirect method, how does an increase in trade payables during the year affect cash generated from operations?
- Q10A company's statement of cash flows shows net cash from operating activities of $42,000, net cash used in investing activities of $31,500…