Leslie Ltd Has Found an Error in Its Revenue Account

question 7

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.
-Assuming that the dividend is unchanged,what is the effect of the error on retained profits at end of 2015?

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

---

Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, crucial for maintaining bodily functions.

African Americans

A demographic group in the U.S. identified by their ancestral linkage to any of the black racial groups native to Africa.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, age, gender, or sexual orientation.

Myocardium

The thick middle layer of the heart wall composed of cardiac muscle, responsible for the heart's contractile movement.