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    ivsv's Avatar
    ivsv Posts: 5, Reputation: 1
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    #1

    Nov 14, 2008, 11:26 PM
    Effect on owner's equity
    What is the combined effect of the errors on owner's equity if the net income is overstated?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Dec 12, 2008, 06:54 PM

    If Net Income is overstated, then Retained Earnings is overstated therefore Owner's Equity will be overstated.
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