A $250 Payment on Account Was Recorded as a Debit

question 19

Multiple Choice

A $250 payment on account was recorded as a debit to accounts receivable and a credit to accounts payable. This error will cause:

• A)accounts receivable to be overstated.
• B)accounts payable to be understated.
• C)cash to be understated.
• D)owner's equity to be overstated.

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Definitions:

Predict Outcomes

The process of forecasting the probable results or consequences of an action or event based on current data or trends.

Self-interest

Acting based on one’s own benefit or advantage, often disregarding others.

Utilitarian Theory

A normative ethical theory that proposes actions are right if they benefit the majority, aiming to maximize happiness and reduce suffering.

Equally

Pertaining to being the same in quantity, size, degree, or value, or treating all parties in a situation or context without partiality or discrimination.