A Debit to a Liability Account Was Posted to a Revenue

question 55

Multiple Choice

A debit to a liability account was posted to a revenue account.This would cause:

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

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Definitions:

Federal Government

The system of government in which power is divided between a central government and individual states, characteristic of a federation.

Liberties Or Freedom

Freedom from restrictive control by authorities over one's lifestyle, actions, or political viewpoints within a societal framework.

Nullification Crisis

A confrontation between the state of South Carolina and the federal government in 1832-33 over the state's attempt to nullify federal tariffs.

Daniel Webster

An influential American statesman and senator in the early 19th century, known for his advocacy for the Constitution and the Union.