A debit to an expense account was posted to an asset account. This would cause
A) assets to be understated.
B) liabilities to be understated.
C) capital to be understated.
D) expenses to be understated.

Question

Quizplus · Accepted Answer

By posting a debit intended for an expense account to an asset account, expenses are understated because the expense was not recorded, while the asset account is overstated because it received the debit instead.

A Debit to an Expense Account Was Posted to an Asset