A Debit to an Asset Account Was Posted as a Debit

question 39

Multiple Choice

A debit to an asset account was posted as a debit to a liability account. This error would cause:

• A) assets to be understated.
• B) liabilities to be overstated.
• C) capital to be understated.
• D) None of the above is correct.

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Definitions:

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.

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The practice by healthcare providers of ordering tests, treatments, or procedures primarily to protect themselves from litigation, rather than to benefit the patient's health.

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