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The Tammy Inc. issues common share to new owners in exchange for a cash contribution...

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Question

Accounting

The Tammy Inc. issues common share to new owners in exchange for a cash contribution of $34,000. The company's accountant thought the money came form a sale and recorded an increase in cash and an increase in revenue. Which of the following statements is FALSE as a result of this recording?
Question 25 options:
a)
the company's common share account is understated on the balance sheet
b)
the company's assets are overstated on the balance sheet.
c)
the company's assets are correctly stated on the income statement
d)
the company's net income is overstated on the income statement

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