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

Question

Quizplus · Accepted Answer

Posting a debit to the Capital account to a revenue account would decrease the balance in the Capital account and increase the balance in the revenue account. This would result in revenue being understated, as the debit to Capital should not have been recorded as revenue.

A Debit to the Capital Account Was Posted to a Revenue