What is impact of recording error on financial statements

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Reference no: EM133378496

Question: Riverton Company rents a building that it uses in its operations. The accountant for Riverton Company mistakenly input a $1,000 rental payment on the building as just $100 in the accounting records. What is the impact of this recording error on the financial statements?

Expenses are too high, so reported net income is too low.
Revenues are too low, so reported net income is too low.
Revenues are too high, so reported net income is too high.
Expenses are too low, so reported net income is too high.

Reference no: EM133378496

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