The purchase of supplies with both cash and on account was recorded as only an open account purchase. Due to this error:

A) Assets would be understated.
B) Liabilities would be overstated.
C) Owner's Equity would be overstated.
D) None of the above is correct.

Open Account

a method of credit where the seller ships goods or provides services to a buyer under an agreement to bill them later or on a recurring basis.

Assets

Resources owned by a business, expected to bring future economic benefits.

Liabilities

Debts or financial responsibilities that a business has to other entities, requiring repayment over a period through the exchange of economic resources such as cash, products, or services.