Question

1)A credit to a liability account was posted to the capital account. This would cause: A)...

1)A credit to a liability account was posted to the capital account. This would cause:

A)

assets to be overstated.
B)

liabilities to be understated.
C)

owner's equity to be understated.
D)

net income to be overstated.

2) A credit to an asset account was posted to an expense account. This would cause:

A)

assets to be overstated.
B)

liabilities to be understated.
C)

capital to be understated.
D)

expenses to be understated.

3) A debit to an expense account was posted to an asset account. This would cause:

A)

assets to be overstated.
B)

liabilities to be understated.
C)

capital to be understated.
D)

expenses to be overstated.

4) A debit to the Capital account was posted to an expense account. This would cause:

A)

assets to be overstated.
B)

liabilities to be understated.
C)

capital to be overstated.
D)

expense to be overstated.
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