A Debit to the Accounts Receivable Account Was Posted to an Expenses

question 46

Multiple Choice

A debit to the Accounts Receivable account was posted to an Expenses account. This would cause:

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

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Definitions:

Tax Allowances

Deductions or adjustments to taxable income permitted by tax authorities, allowing individuals or businesses to reduce their taxable income.