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.
Correct Answer:
Verified
Correct Answer:
Verified
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