A debit to the Accounts Receivable account was posted to an Expenses account. This would cause:
A) assets to be understated.
B) liabilities to be overstated.
C) assets to be overstated.
D) expenses to be understated.

Question

Quizplus · Accepted Answer

When a debit that should have increased Accounts Receivable (an asset account) is mistakenly posted to an Expenses account, it fails to increase the asset as it should have, leading to assets being understated.

A Debit to the Accounts Receivable Account Was Posted to an Expenses