Which of the following statements regarding posting and classification is correct?
A)Posting journal entries involves copying the dollar amounts from the ledger into the journal.
B)If a $100 debit is erroneously posted to an account as a $100 credit,the accounts will be out of balance by $100.
C)If a $5,000 credit to a stockholders' equity account is misclassified as a $5,000 credit to a liability,the accounting equation will still balance.
D)If a purchase of supplies on account for $100 is recorded with a debit to Supplies of $10 and a credit to Accounts Payable for $10,the accounting equation will not balance.

Question

Quizplus · Accepted Answer

If a $5,000 credit to a stockholders' equity account is misclassified as a $5,000 credit to a liability,the accounting equation will still balance because liabilities and stockholders' equity are on the same side of the accounting equation.After journal entries have been recorded,their dollar amounts are copied ("posted")to each ledger account affected by the transaction (rather than from the ledger to the journal).If an error in posting is made so that a $100 debit is entered as a credit to an account,the accounts will be out of balance by $200 (rather than $100).If a transaction is recorded with a debit to Supplies of $10 and a credit to Accounts Payable for $10,the accounting equation will still balance.

Which of the Following Statements Regarding Posting and Classification Is