Income taxes paid refer to the actual cash outflow a company experiences when it settles its tax obligations to the government based on its taxable income. This amount is recorded in the cash flow statement under operating activities, reflecting the company's commitment to fulfilling its legal tax duties and impacting its overall cash flow position. Understanding how this figure is represented can help in analyzing a company's financial health and performance over time.
congrats on reading the definition of Income Taxes Paid. now let's actually learn it.