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A credit to a Liability account was posted as a credit to an Expense account. This...

A credit to a Liability account was posted as a credit to an Expense account. This error would​ cause:

A. Expenses to be overstated.

B. Assets to be overstated.

C. Liabilities to be understated.

D. Liabilities to be overstated.

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Answer #1

Answer C) Liabilities to be understated

For example $100 was credited to rent expense instead of rent payable, so Rent payable ( Liability) would be understated.

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