Leslie Ltd Has Found an Error in Its Revenue Account

question 11

Multiple Choice

Leslie Ltd has found an error in its revenue account: an invoice for $3000 was recorded as revenue in 2015 when it should have been recorded in 2016.The company's income tax rate is 40 per cent and there was no corresponding error in cost of goods sold.
-What is the effect of the error on the 2015 net profit?

• A) It is $3000 too high.
• B) It is $1800 too high.
• C) It is $1200 too high.
• D) Profit is not affected.

---

Definitions:

Sociology

The scientific study of society, social relationships, social interaction, and culture of everyday life.

Communist Manifesto

A political document written by Karl Marx and Friedrich Engels that presents the principles of communism and advocates for the proletariat's class struggle to overthrow capitalist societies.

Brym and Lie

Sociologists known for their contributions to the study of social dynamics and structures.

Hypothesis

A proposed explanation or assumption for a phenomenon, placed forward as a basis for further investigation or experimentation.