Asked by

Rosie Jaramillo
on Nov 15, 2024

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A credit to an asset account was posted to a liability account. This would cause:

A) assets to be overstated.
B) liabilities to be understated.
C) capital to be understated.
D) revenue to be overstated.

Asset Account

An account on a balance sheet that represents a resource with economic value owned or controlled by an individual or business.

Liability Account

An account noted on the balance sheet that represents debts or obligations that a company owes to others and must settle over time.

  • Understand how posting errors affect the financial statements and can identify specific examples of such errors.
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Supriya KhatiwadaNov 18, 2024
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