Reference no: EM132673856

Problem 1: If a company records cash received for services provided this accounting period with a debit to Sales Revenue and credit to Cash, how will finanical statements be affected in the curret period?

Option 1: Net income will be too high and total assets will be too low.

Option 2: Net income and total assets will be too low.

Option 3: Neither net income not total assets will not be affected by this error.

Option 4: Net income will be too low and total assets will be too high.

Option 5: Net income and total assets will be too high.