A Credit to an Asset Account Was Posted to a Liability

question 9

Multiple Choice

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

• A)assets to be understated.
• B)liabilities to be overstated.
• C)capital to be understated.
• D)None of the above are correct.

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Definitions:

Carver's Model

A governance model created by John Carver that emphasizes the board's responsibility for the organization's purpose, direction, and overall policy.

Sarbanes-Oxley Act

United States federal law enacted in 2002 to protect investors from fraudulent accounting activities by corporations, including stringent record-keeping requirements.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.

Electing Board Members

The process by which individuals are chosen or voted into a board of directors, typically by shareholders or members of the organization, to serve and make decisions on its behalf.