Use the Information Below to Answer the Following Questions

question 4

Multiple Choice

Use the information below to answer the following questions:
Freda Ltd decided to change its accounting for long service leave in order to accrue expense sooner than had been done previously. The effect on provision for employee entitlements as at the end of 2011 was to increase it by $14 000. By the end of 2009, the liability would go up by $21 000. The company’s income tax rate is 35%.
-What would be the effect of the change on 2012 cash flow from operations?

• A) It would be $2450 lower.
• B) It would be $4550 lower.
• C) It would be $7000 lower.
• D) There would be no cash flow effect.

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Definitions:

Reproductive Potential

The maximum possible number of offspring that an organism can produce under optimal conditions.

Affiliation Motive

The psychological drive to create and maintain social bonds and relationships with others.

Joining Clubs

The act of becoming a member of organized groups or associations, which can provide opportunities for socialization, personal development, and professional networking.

Facial Feedback Hypothesis

The idea that sensory feedback from the facial expressions we make can affect our mood and emotional experiences.