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 low, so reported net income is too high. 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. The accountant for Kearns Company mistakenly posted an expense amount as an asset in the general ledger. What is the financial statement impact of this error? Assets are too high, and retained earnings are too low. Assets are too low, and retained earnings are too low. Assets are too low, and retained earnings are too high. Assets are too high, and retained earnings are too high. Why is the separation-of-duties control so important with cash? Without separation of duties, the general ledger is maintained by the same person who posts the closing entries. Without separation of duties, an employee who takes cash can cover up the shortage by adjusting the accounting records. Without separation of duties, the general ledger is maintained by the same person who posts the adjusting entries. Without separation of duties, the adjusting entry process and the closing entry process are done by the same person.