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How are taxes on income classified in a cash flow statement?
  • a)
    As cash flows from operating activities.
  • b)
    As cash flows from investing activities.
  • c)
    As cash flows from financing activities.
  • d)
    They are excluded from the cash flow statement.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
How are taxes on income classified in a cash flow statement?a)As cash ...
Taxes on income are generally classified as cash flows from operating activities in a cash flow statement. This is because they arise from transactions that give rise to cash flows classified as operating activities. However, if it is possible to identify the tax cash flow with an individual transaction classified as investing or financing activities, it can be classified accordingly.
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How are taxes on income classified in a cash flow statement?a)As cash flows from operating activities.b)As cash flows from investing activities.c)As cash flows from financing activities.d)They are excluded from the cash flow statement.Correct answer is option 'A'. Can you explain this answer?
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