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A debit to an asset account was posted to a liability account. This error would cause

A debit to an asset account was posted to a liability account. This error would cause

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Answer #1

A debit to an asset account was posted to a liability account. This error would cause:

- Understatement of assets

- Understatement of liabilities.

When an asset is debited, it increases asset, Thus, when a debit to the asset is not posted to asset, asset is understated.

When a liability is debited, it decreases liability. Thus, when by mistake, a debit is wrongly posted to a liability, liability is understated.

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