A credit to an asset account was posted as a credit to a revenue account. This error would cause:
A) assets to be overstated.
B) revenue to be overstated.
C) expenses to be overstated.
D) Both A and B are correct.

Question

Quizplus · Accepted Answer

The error would cause revenue to be overstated because the credit intended for an asset account was incorrectly posted to a revenue account, increasing the revenue balance.

A Credit to an Asset Account Was Posted as a Credit