Use the information below to answer the following questions:
Leslie Ltd has found an error in its revenue account: an invoice for $3000 was recorded as revenue in 2011 when it should have been recorded in 2012. The company’s income tax rate is 40% 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 2012?
A) It is $1800 too low.
B) It is $3000 too low.
C) It is $1800 too high.
D) There is no effect.

Question

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The Answer of Use the information below to answer the following questions:
Leslie Ltd has found an error in its revenue account: an invoice for $3000 was recorded as revenue in 2011 when it should have been recorded in 2012. The company’s income tax rate is 40% 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 2012?
A) It is $1800 too low.
B) It is $3000 too low.
C) It is $1800 too high.
D) There is no effect.

Use the Information Below to Answer the Following Questions