Question

Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash flows.
True or False?

Answer 1

Answer:

true

Explanation:

tax is a compulsory financial charge imposed upon on a tax payer by the government. In preparation of a company profit or loss account and other comprehensive statement , it is mandatory that the company is expected to deduct the approved tax rate after arriving at its operating profit. paying of taxes is a cash outflow in the operating activities of a cash flow statement because it is paid within one year and paid from the operating activities of the company.