Use the Information Below to Answer the Following Questions

question 52

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 2012?

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

---

Definitions:

Water Soluble

Describes substances that can dissolve in water.

Fischer Projection

A two-dimensional representation of a three-dimensional organic molecule by projection, displaying chiral centers and spatial configuration.

D-Glucose

A monosaccharide sugar with several key biological roles, often referred to as blood sugar, dextrose, or grape sugar.

Hemiacetal Form

An organic compound characterized by a functional group with a carbon atom connected to one OR group, one OH group, an alkyl chain, and a hydrogen atom, typically formed from the partial reaction of an aldehyde with an alcohol.