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Carlton Taylor
on Dec 17, 2024

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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 understated.

Liability Account

An accounting record that captures obligations or debts a company owes to others, which are expected to be paid in the future.

Expense Account

An account where businesses track costs incurred during operations, often related to employees' business-related expenses.

  • Understand the repercussions of posting mistakes on the financial statements and discern specific examples of these errors.
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abinash swainDec 21, 2024
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