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

Question

Quizplus · Accepted Answer

Posting a debit to a liability account to a revenue account would result in revenues being understated since revenue should have a credit balance and a debit to the revenue account would reduce that balance. Liabilities would not be affected. Capital would also not be affected directly by this error.

A Debit to a Liability Account Was Posted to a Revenue