If the Debit Amount of an Entry to Record the Purchase

question 84

Multiple Choice

If the debit amount of an entry to record the purchase of supplies on account was not posted:

• A) liabilities would be understated
• B) liabilities would be overstated
• C) assets would be overstated
• D) assets would be understated

---

Definitions:

Intangibles

Non-physical assets that cannot be seen, touched, or physically measured, such as patents, trademarks, and goodwill.

Middle Class

A socio-economic group between the working class and upper class, characterized by moderate income levels and stable employment.

Situation Analysis

An assessment process that examines an organization's internal and external environment to understand current conditions and identify future opportunities and threats.

Data

Factual information used as a basis for reasoning, discussion, or calculation; often numeric, it can be analyzed to inform decisions.