How many of the following statements regarding posting and classification are true?
Posting journal entries involves copying the dollar amounts from the journal into the ledger.
If a $100 debit is erroneously posted to an account as a $100 credit, the accounts will be out of balance by
$100.
If a $5,000 liability is misclassified as stockholders' equity then the accounting equation will still balance.
A) None
B) One
C) Two

Question

Quizplus · Accepted Answer

- The first statement is false. Posting journal entries involves transferring the information from the journal to the ledger, which includes not only the dollar amounts but also the corresponding account titles.
- The second statement is true. If a debit is mistakenly posted as a credit or vice versa, it will create a discrepancy of double the amount in the trial balance (which lists all the account balances).
- The third statement is false. Misclassifying a liability as equity will result in an imbalance of $5,000 in the accounting equation (since assets and liabilities must equal equity), and hence the equation will not balance.

How Many of the Following Statements Regarding Posting and Classification