Chapter 2, Problem 9CDQ

To determine

Concept Introduction:

Accounting equation:

Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows:

  $\text{Assets = Liabilities + Equity}$

To Indicate:

The effect of error on the accounting equation, income statement, Stockholder's equity, and balance sheet