a) The accountant for a company mistakenly posted a liability amount as a revenue in the general ledger.

b) The accountant for a company mistakenly posted an expense amount as an asset in the general ledger.

What are the financial statement impacts of these errors?

Answer options for A

• Liabilities are too high, and retained earnings are too low.

• Liabilities are too high, and retained earnings are too high.
• Liabilities are too low, and retained earnings are too high.

• Liabilities are too low, and retained earnings are too low.

Answer options for B

• Assets are too low, and retained earnings are too low.

• Assets are too high, and retained earnings are too high.

• Assets are too low, and retained earnings are too high

• Assets are too high, and retained earnings are too low.