A credit to an asset account was posted to a revenue account.This would cause:
A)assets to be understated.
B)liabilities to be overstated.
C)capital to be understated.
D)revenue to be overstated.

Question

Quizplus · Accepted Answer

Posting a credit to an asset account to a revenue account would result in revenue being overstated. This is because assets and revenues are separate and distinct accounts, and a credit to an asset account does not represent revenue earned.

A Credit to an Asset Account Was Posted to a Revenue