Asked by
Gustavo Bertoli
on Dec 17, 2024Verified
A credit to a liability account was posted as a debit to the Revenue account. This error would cause:
A) Liability to be overstated.
B) Revenue to be understated.
C) Revenue to be overstated.
D) None of the above is correct.
Liability Account
An account representing an obligation or amount owed by a business to others, such as loans, accounts payable, or mortgages.
Revenue Account
An account that tracks the income a company generates from its operations or activities.
- Discern and amend usual accounting mishaps and their ramifications on financial summaries.
Verified Answer
MM
Learning Objectives
- Discern and amend usual accounting mishaps and their ramifications on financial summaries.