A Debit to an Asset Account Was Posted to an Expense

question 132

Multiple Choice

A debit to an asset account was posted to an expense account. This error would cause

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

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Definitions:

Mother Dairy

A leading dairy brand in India, known for its milk products and edible goods.

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A legal term referring to a person who has acquired a negotiable instrument in good faith, for value, and without notice of any defect or claim against it.

Bureau of Consumer Financial Protection

A U.S. government agency that ensures consumers are treated fairly by banks, lenders, and other financial companies.

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The individual or entity to whom a payment is to be made or is made.