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

Question

Quizplus · Accepted Answer

Posting a debit to a revenue account would cause revenue to be understated because a debit to a revenue account represents a decrease in revenue. Additionally, it would also cause the liability account to be understated as the debit was erroneously posted to a revenue account instead of the correct liability account.

A Debit to a Liability Account Was Posted to a Revenue