How would the following errors affect the account balances

Reference no: EM13481658

How would the following errors affect the account balances and the basic accounting equation: assets = liabilities + owners' equity? How do the misstatements affect income?

1. The purchase of a truck is recorded as an expense instead of an asset.

2. A cash payment on accounts receivable is received but not recorded.

3. Fictitious sales on account are recorded.

4. A clerk misreads a handwritten invoice for repairs and records it as $1,500 instead of $1,800. 5. Payment is received on December 31 for the next three months' rent and is recorded as revenue.

Reference no: EM13481658

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