Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

13. Statement of Cash Flows

Introduction to the Statement of Cash Flows

Financial Accounting

13. Statement of Cash Flows

Introduction to the Statement of Cash Flows

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Multiple Choice

Which of the following is subject to double taxation?

Interest received from government bonds

Dividends paid by corporations to shareholders

Salaries paid to employees

Payments for inventory purchases

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Understand the concept of double taxation: Double taxation occurs when the same income is taxed at two different levels. In the context of corporations, this typically happens when corporate profits are taxed at the corporate level, and then dividends distributed to shareholders are taxed again at the individual level.

Analyze the options provided: Each option represents a different type of payment or income. Determine whether each is subject to taxation at two levels.

Option 1: Interest received from government bonds - This is typically taxed only at the individual level (or may even be tax-exempt in some cases, depending on the jurisdiction). It is not subject to double taxation.

Option 2: Dividends paid by corporations to shareholders - Corporate profits are taxed at the corporate level, and when these profits are distributed as dividends, they are taxed again at the individual level. This is a classic example of double taxation.

Option 3: Salaries paid to employees and Option 4: Payments for inventory purchases - Both are expenses for the corporation and are deducted from taxable income. These payments are taxed only at the individual level (for employees or suppliers) and are not subject to double taxation.