IF A PAYMENT OF $30,000 FOR EXPENSES WAS INCORRECTLY RECORDED AS AN INCREASE IN CASH OF $30,000 AND A DECREASE IN RETAINED EARNINGS OF $30,000, WHAT IS THE EFFECT OF THIS ERROR ON THE ACCOUNTING EQUATION?

IF A PAYMENT OF $30,000 FOR EXPENSES WAS INCORRECTLY RECORDED AS AN INCREASE IN CASH OF $30,000 AND A DECREASE IN RETAINED EARNINGS OF $30,000, WHAT IS THE EFFECT OF THIS ERROR ON THE ACCOUNTING EQUATION?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 5Q: Indicate by a (+), (), or (0) whether each of the following events would most likely cause accounts...

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IF A PAYMENT OF $30,000 FOR EXPENSES WAS INCORRECTLY
RECORDED AS AN INCREASE IN CASH OF $30,000 AND A DECREASE
IN RETAINED EARNINGS OF $30,000, WHAT IS THE EFFECT OF THIS
ERROR ON THE ACCOUNTING EQUATION?

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