A debit to the Capital account was posted to an expense account. This would cause
A) assets to be overstated.
B) liabilities to be understated.
C) capital to be overstated.
D) expense to be understated.

Question

Quizplus · Accepted Answer

Posting a debit intended for the Capital account to an expense account would not decrease the Capital account as it should, leading to an overstatement of capital.

A Debit to the Capital Account Was Posted to an Expense