Leslie Ltd Has Found an Error in Its Revenue Account

question 36

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 2016 net profit?

• A) It is $1800 too low.
• B) It is $3000 too low.
• C) It is $1800 too high.
• D) It is $3000 too high.

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Definitions:

Warehousing Needs

The requirements related to the storage of goods, including space, security, and management, to ensure safe and efficient handling.

Learning and Innovation

The process through which organizations and individuals gain new knowledge and apply it creatively to improve products, services, or processes.

Programming Errors

Mistakes or flaws in the code of a software program that can lead to incorrect output, crashes, or vulnerabilities.

Financial

Pertaining to matters involving the management, investment, and study of money and its distribution.