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  • Jan 18, 2013, 06:37 PM
    Grace123Mercy
    Accounting question
    Patnode recorded a 2005 tax expense of $3,000. What amount did it pay to the tax authorities during 2005? Taxes payable is $9400.

    A $2,400
    B $7,000
    C $600
    D $5,400

    I am really confused here, I think the answer might be a or d. I don't know how to actually calculate this. Is there a formula to use. Please help.
  • Jan 19, 2013, 05:04 AM
    Fidget1
    Have you made a mistake when typing in your question or have you missed something out?

    In general, to find the cash paid:

    Take opening bal, add expense for the year, deduct closing balance. The difference is the cash paid.

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