A Credit to an Asset Account Was Posted to a Liability

question 19

Multiple Choice

A credit to an asset account was posted to a liability account. This would cause

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

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Definitions:

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Situations that present difficulty, requiring a solution or adaptation.

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A senior executive responsible for the accounting operations of a company, overseeing financial reporting, and regulatory compliance.

Chief Accounting Manager

A senior-level executive responsible for managing the accounting operations of a company, ensuring the accuracy of financial statements and compliance with financial regulations.