Use the Information Below to Answer the Following Questions

question 37

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.
-Assuming that the dividend is unchanged,what is the effect of the error on retained profits at end of 2011?

• A) It is $1200 too high.
• B) It is $1800 too high.
• C) It is $3000 too high.
• D) There is no effect.

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Definitions:

Somatosensory Area

A region of the brain that processes and interprets sensations from different parts of the body.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including the context and emotions associated with them.

Herpesvirus

A large family of viruses that cause various diseases in animals and humans, including cold sores, chickenpox, and genital herpes.

Hippocampus

The hippocampus is a major component of the brain of humans and other vertebrates, playing critical roles in the consolidation of information from short-term to long-term memory as well as in spatial memory that enables navigation.