Asked by Stefanie Castro on Jun 11, 2024
Verified
Increase in income taxes payable
A) Operating activities
B) Financing activities
C) Investing activities
D) Schedule of noncash financing and investing
Income Taxes Payable
The amount of income taxes a company owes to governmental entities but has not yet paid.
Operating Activities
Operating Activities involve the cash flows that are generated from the primary business activities of a company, such as selling products or services.
- Establish the proper classification of activities within cash flows, specifically operating, investing, financing, and noncash investing and financing activities.
Verified Answer
PL
Pantelia LamnatosJun 18, 2024
Final Answer :
A
Explanation :
An increase in income taxes payable would typically be reported as a change in a liability account in the operating activities section of the statement of cash flows, since it represents a cash outflow that is related to the company's current operations.
Learning Objectives
- Establish the proper classification of activities within cash flows, specifically operating, investing, financing, and noncash investing and financing activities.