A debit to a Liability account was posted as a debit to an Asset account. This error would cause:

A) Asset to be understated.
B) Liabilities to be understated.
C) Asset to be overstated.
D) None of the above is correct.

Liability Account

A liability account records the obligations or debts a company owes to others, such as loans, accounts payable, and mortgages.

Asset Account

An account on a company's balance sheet that represents a resource with economic value owned or controlled with the expectation that it will provide future benefit.