Accounting errors-transaction errors, Accounting Basics

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Accounting Errors-Transaction Errors
How would the following errors affect the account balances and the basic accounting equation,
Assets = Liabilities + Owners' Equity? How do the misstatements affect income?
a. The purchase of a truck is recorded as an expense instead of an asset.
b. A cash payment on accounts receivable is received but not recorded.
c. Fictitious sales on account are recorded.
d. A clerk misreads a handwritten invoice for repairs and records it as $1,500 instead of $1,800.
e. Payment is received on December 31 for the next three months' rent and is recorded as
revenue.


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