A Debit to the Capital Account Was Posted to an Expense

question 100

Multiple Choice

A debit to the Capital account was posted to an expense account. This would cause

• A) assets to be overstated.
• B) liabilities to be understated.
• C) capital to be overstated.
• D) expense to be understated.

Describe mechanisms involved in chromosomal movement and segregation during cell division.

Understand the concept of unconscionability in contract law, particularly in the context of limiting damages.

Analyze and apply the criteria for determining the enforceability of liquidated damages provisions.

Examine the enforcement of contract provisions limiting consequential damages, with a focus on consumer goods.

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Definitions:

Bad Debt Expense

An accounting term representing the amount of revenue considered uncollectible from credit sales.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables balance to reflect the amount that is expected to be uncollectible.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is an accounting technique to estimate the amount of receivables that are expected not to be collected, acting as a contra account to accounts receivable.

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of credit sales that are not expected to be collected due to customer default.