Question: Riverton Company rents a building that it uses in its operations. The accountant for Riverton Company mistakenly input a $1,000 rental payment on the building

Riverton Company rents a building that it uses in its operations. The accountant for Riverton Company mistakenly input a $1,000 rental payment on the building as just $100 in the accounting records. What is the impact of this recording error on the financial statements?

Revenues are too low, so reported net income is too low.

Revenues are too high, so reported net income is too high.

Expenses are too high, so reported net income is too low.

Expenses are too low, so reported net income is too high.

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