Use the Information Below to Answer the Following Questions

question 46

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 2012 cash from operations?

• A) It is $3000 too high.
• B) It is $1800 too high.
• C) It is $1800 too low.
• D) There is no cash effect.

---

Definitions:

Resources

The total means available for economic and operational development, such as natural resources, personnel, and capital.

Strategic Decisions

Choices made by top management that have a significant impact on the direction and success of an organization.

Tentree Apparel

A sustainable and eco-friendly clothing brand known for planting ten trees for every product sold, focusing on environmental stewardship.

Concepts Of Strategy

The foundational ideas and theories that underlie the planning and execution of strategies to achieve specific objectives.