Providing services to a credit customer was recorded with a debit to Cash and a

Accounting
Tutor: None Selected Time limit: 1 Day

Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings. This error would cause __________.

C. the total period’s end stockholders’ equity to be understated

D. the period’s net income to be overstated

Feb 5th, 2015

Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings. This error would cause __________.

D. the period’s net income to be overstated



This is because the income has not be realised yet since this is a credit customer but cash account has already been  debited.

Feb 5th, 2015

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Feb 5th, 2015
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