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30 A company rents a building that it uses in its operations. The accountant for the company mistakenly input a D $1,000 rental payment on the building as $100 in the accounting records. What is the impact of this error on the financial statements? O Revenues are too high, so reported net income is too high. O Expenses are too low, so reported net income is too high. O Revenues are too low, so reported net income is too low. O Expenses are too high, so reported net income is too low.

30 A company rents a building that it uses in its operations. The accountant for the company mistakenly input a D $1,000 rental payment on the building as $100 in the accounting records. What is the impact of this error on the financial statements? O Revenues are too high, so reported net income is too high. O Expenses are too low, so reported net income is too high. O Revenues are too low, so reported net income is too low. O Expenses are too high, so reported net income is too low.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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30 A company rents a building that it uses in its operations. The accountant for the company mistakenly input a $1,000 rental payment on the building as $100 in the accounting records. 0 What is the impact of this error on the financial statements? Revenues are too high, so reported net income is too high. Expenses are too low, so reported net income is too high. O Revenues are too low, so reported net income is too low. O Expenses are too high, so reported net income is too low. You are screen sharing ✔ Stop Share ← Next →
Transcribed Image Text:30 A company rents a building that it uses in its operations. The accountant for the company mistakenly input a $1,000 rental payment on the building as $100 in the accounting records. 0 What is the impact of this error on the financial statements? Revenues are too high, so reported net income is too high. Expenses are too low, so reported net income is too high. O Revenues are too low, so reported net income is too low. O Expenses are too high, so reported net income is too low. You are screen sharing ✔ Stop Share ← Next →
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