A debit to a revenue account was posted to an expense account. This would cause
A) expenses to be overstated.
B) revenue to be understated.
C) expenses to be understated.
D) capital to be overstated.

Question

Quizplus · Accepted Answer

A debit to a revenue account should increase revenue, but if it is posted to an expense account, expenses will be overstated. This error will ultimately lead to an overstatement of expenses and a lower net income.

A Debit to a Revenue Account Was Posted to an Expense