The recorded balance in an account generally represents:
A) the lower limit on the amount by which it may be overstated.
B) the upper limit on the amount by which it may be overstated.
C) the lower limit on the amount by which it may be understated.
D) the upper limit on the amount by which it may be understated.

Question

Quizplus · Accepted Answer

The recorded balance in an account represents the upper limit on the amount by which it may be overstated because it is the maximum amount recorded, beyond which any additional amount would be considered an overstatement.

The Recorded Balance in an Account Generally Represents