Asked by Rebecca Dooley on May 08, 2024

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A debit to an expense account was posted to an asset account. This would cause:

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

Expense Account

An account where costs associated with the operations of a business, such as rent, utilities, and salaries, are recorded.

Asset Account

An account that represents a tangible or intangible item of value owned by a company, such as cash, inventory, or equipment.

  • Acquire knowledge about the consequences of posting errors on financial statements and can pinpoint particular examples of these errors.
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AA
Amanowil Abadir

May 14, 2024

Final Answer :
A
Explanation :
By posting a debit intended for an expense account to an asset account, the asset account balance increases erroneously, leading to an overstatement of assets.