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

Question

Quizplus · Accepted Answer

Debiting an expense account instead of an asset account overstates expenses and understates assets, as the expense increases and the asset does not increase as it should.

A Debit to an Asset Account Was Posted as a Debit