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.

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Definitions:

Infancy

The period in a child's life from birth to 12 months, a critical time for growth and development.

Psychodynamic Psychotherapy

A therapeutic approach focusing on unconscious processes as they are manifested in a person's present behavior, with the goals of self-awareness and understanding of the influence of the past on present behavior.

Free Association

A psychoanalytic technique where the patient speaks freely to reveal unconscious thoughts and feelings.

Schizophrenia

A chronic mental health disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.