A receipt of $15,700 cash from a customer as a payment on account was incorrectly credit to
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Question:
A receipt of $15,700 cash from a customer as a payment on account was incorrectly credit to service revenue. Which is the effect of this error on the company's financial statements.
a. Assets are understated by $15,700 and owners' equity is understated by $15,700.
b. Assets are overstated by $31,400 and owners' equity is overstated by $31,400.
c. Assets are overstated by $15,700 and owners' equity is overstated by $15,700.
d. Assets are understated by $15,700 and liabilities are understated by $15,700.
e. Assets are understated by $31,400 and liabilities are understated by $31,400
Related Book For
Introduction to Business Law
ISBN: 9780324826999
3rd Edition
Authors: Jeff rey F. Beatty, Susan S. Samuelson
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