A Credit to an Asset Account Was Posted as a Credit

question 50

Multiple Choice

A credit to an asset account was posted as a credit to the Revenue account. This error would cause:

• A) revenue to be overstated.
• B) liabilities to be overstated.
• C) capital to be understated.
• D) Both A and C are correct.

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Definitions:

Urgency

The quality of requiring swift action or immediate attention, commonly used in business and personal contexts to prioritize tasks or decisions.

Legitimate Stakeholders

Individuals or groups that have a valid or legally recognized interest or claim in a project, business or company.

Proper

Suitable or appropriate to the circumstances; conforming to the accepted standard or rules.

Desired

A state of wanting or wishing for something with the expectation or hope of achieving it.