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:

Deregulation

The process of removing or reducing government regulations from specific industries or sectors, often intended to increase efficiency and promote competition.

Mortgage Industry

Comprises companies and individuals involved in creating, servicing, and processing mortgages for residential and commercial properties, including lenders, mortgage brokers, and real estate professionals.

Housing Crisis

A situation in which affordable housing is scarce, leading to increased homelessness and housing insecurity among populations.

Foreclosures

The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home after the homeowner fails to make full principal and interest payments on a loan.