A Credit to an Asset Account Was Posted to a Liability

question 62

Multiple Choice

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

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

Understand the concept of presentment and its relevance to negotiable instruments.

Identify defenses against the enforcement of negotiable instruments and the impact of negligence.

Grasp the legal consequences of cancellation, reacquisition, and ratification concerning negotiable instruments.

Understand the warranties involved and the implications of an instrument's alteration or forgery.

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Definitions:

Lacunae

Lacunae are small cavities in bone or cartilage tissue that house cells, such as osteocytes in bones, providing a microenvironment for cell maintenance and nutrient exchange.

Canaliculi

Small, channel-like structures in bone that allow for the communication and nutrient exchange between osteocytes (bone cells) and their environment.

Periosteum

Except for the joint areas, the bones are enveloped by a dense connective tissue layer that contains many blood vessels.

Trabeculae

The network of fine, bony spicules within the structure of certain bones, such as the spongy part of bone, that adds structural support while minimizing weight.