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During the Current Financial Year, Omega Finance Enterprises Pays $1,200

Question 57

Multiple Choice

During the current financial year, Omega Finance Enterprises pays $1,200 on account to a creditor. The accountant debited Rent Expense for $1,200 and credited Cash for $1,200. This entry in the journal results in:


A) the understatement of revenue.
B) the understatement of Cash.
C) the overstatement of revenue.
D) the overstatement of Cash.
E) the understatement of total liabilities.

Correct Answer:

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