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 $3 000 was recorded as revenue in 2018 when it should have been recorded in 2019. 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 2018 cash from operations?

• A) It is $1 200 too high.
• B) It is $1 800 too high.
• C) It is $3 000 too high.
• D) There is no cash effect.

---

Definitions:

Reactionary Movements

Political or social movements aiming to reverse current trends or policies and restore earlier states of social or political order.

Society Moving

The dynamic and continuous process of change and evolution in societal structures, norms, and values.

Henry Morgentaler

A Holocaust survivor and physician who became a prominent advocate for abortion rights in Canada, significantly impacting the country's reproductive policies.

Non-institutionalized Networks

Social connections and relationships that exist outside formal or established organizations, often relying on personal, informal interactions.