A credit to a liability account was posted to the capital account. This would cause:
A) assets to be understated.
B) liabilities to be understated.
C) owner's equity to be understated.
D) net income to be overstated.

Question

Quizplus · Accepted Answer

Liabilities would be understated because the credit that should have increased the liability account was incorrectly posted to the capital account, reducing the total recorded liabilities.

A Credit to a Liability Account Was Posted to the Capital