A debit to an expense account was posted to a revenue account. This error would cause
A) assets to be overstated.
B) liabilities to be overstated.
C) revenue to be understated.
D) None of the above are correct.

Question

Quizplus · Accepted Answer

Debiting an expense account means that the expense has increased, while crediting a revenue account means that revenue has increased. Therefore, if a debit was posted to a revenue account, revenue would be understated, as it would not accurately reflect the increase in revenue due to the error.

A Debit to an Expense Account Was Posted to a Revenue