A debit to a liability account was posted to an expense account. This would cause
A) assets to be overstated.
B) liabilities to be understated.
C) owner's equity to be overstated.
D) expenses to be overstated.

Question

Quizplus · Accepted Answer

A debit to a liability account should decrease liabilities, but if it is incorrectly posted to an expense account, it increases expenses instead, causing them to be overstated.

A Debit to a Liability Account Was Posted to an Expense