If the credit amount of an entry to record the payment of salaries was not posted:
A)assets would be overstated.
B)assets would be unaffected.
C)liabilities would be understated.
D)assets would be understated.

Question

Quizplus · Accepted Answer

When the credit amount of an entry to record the payment of salaries is not posted, the liability account (salaries payable) does not decrease, making it seem like the company still owes more than it actually does. However, because the question specifically mentions the non-posting of the credit amount, which would typically reduce liabilities, the direct effect is actually on the cash or bank balance (an asset), which would not be reduced on the books. Therefore, assets would be overstated because the payment made is not reflected in the reduction of the cash or bank balance.

If the Credit Amount of an Entry to Record the Payment