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:

John B. Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior.

Sigmund Freud

An Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Introspection

The examination of one's own thoughts and feelings, reflection on one’s inner self.

Cognitive Neuroscience

The scientific field that is concerned with the study of the biological processes and aspects that underlie cognition, with a focus on the neural connections in the brain.