A $200 Credit to Interest Payable Was Instead Recorded in Error

question 23

Multiple Choice

A $200 credit to Interest Payable was instead recorded in error as a $200 credit to Cash in an adjusting entry,which has been posted to the ledger accounts.Which of the following is the result of this error?

• A)The trial balance is out of balance by $200.
• B)Total assets are understated by $200.
• C)Net income is overstated by $200.
• D)Total liabilities are overstated by $200.