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Use the Information Below to Answer the Following Questions

question 19

Multiple Choice

Use the information below to answer the following questions:
Leslie Ltd has found an error in its revenue account: an invoice for $3000 was recorded as revenue in 2011 when it should have been recorded in 2012. The company’s income tax rate is 40% and there was no corresponding error in cost of goods sold.
-What is the effect of the error on 2011 cash from operations?


Definitions:

Information Power

Information power is the access to and/or the control of information.

Positive Valence

A term used in psychology to describe the attractive or desirable nature of a stimulus, which influences a person’s motivation to pursue or engage in it.

Negative Valence

The negative emotional charge or undesirable assessment associated with a thought, event, or stimulus.

Money Orders

A payment order for a pre-specified amount of money, often used as a safer alternative to cash or personal checks.

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