A Debit to a Liability Account Was Posted to an Expense

question 7

Multiple Choice

A debit to a liability account was posted to an expense account. This would cause

• A) assets to be overstated.
• B) liabilities to be understated.
• C) owner's equity to be overstated.
• D) expenses to be overstated.

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Definitions:

Software License

An agreement between the user and the software developer that must be accepted before installing the software on a computer.

End User License Agreement

A legal contract between the software publisher and the user, outlining the rights and restrictions on how the software can be used.

System Requirements

The set of minimum storage, memory capacity, and processing standards recommended by the software manufacturer to ensure proper operation of a software application.

Open Source

Software with source code that anyone can inspect, modify, and enhance.