Question

A credit to an asset account was posted as a credit to a revenue account. This error would cause:

Group of answer choices

assets to be more than should be.

revenue to be more than it should be. expenses to be more than should be. Both A and B are correct.

Answer 1

A credit to an asset account was posted as a credit to a revenue account. This error would cause: Group of answer choices A) assets to be more than should be. B) revenue to be more than it should be. c) expenses to be more than should be. D) Both A and B are correct. Doption is correct

A credit to an asset account was posted as a credit to a revenue account. this error affect asset account and revenue account both. Now Asset is showing balance more than should be Because if asset account is credited then asset's written down balance depict less balance rather than showing more balance now. lets take a example Building 1000000 less: Depreciation @ 5% -50000 Written down value 950000 If this 50000 value of Depreciation is not credited to an Asset or Building account although It shows wrongly in credit side of revenue account then it will affect 1 it will increase the revenue or revenue to be more than it should be. 2 it will increase the asset balance or assets to be more than should be.

In Our Case entry should be: dr Depreciation A/C Building A/C 50000 50000 cr but wrongly recorded as: dr Depreciation A/c Revenue A/C 50000 50000 cr This Error Type is in Accounting Term is "Error of Principle" Error of Principle means recording of transactions which violating the accounting policies and procedure.