A Debit to an Expense Account Was Posted as a Debit

question 124

Multiple Choice

A debit to an expense account was posted as a debit to a revenue account. This error would cause:

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

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Definitions:

Large Numbers of People

A phrase that refers to situations, studies, or phenomena involving a significant population size.

Normative Economic Statement

A statement expressing a value judgment about what ought to be, based on personal values or opinions rather than factual evidence.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by gross domestic product (GDP) growth.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.