Asked by Rebecca Dooley on May 08, 2024
Verified
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.
Verified Answer
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.
Learning Objectives
- Acquire knowledge about the consequences of posting errors on financial statements and can pinpoint particular examples of these errors.