Asked by Josh

A compound transaction was recorded as follows: debit Equipment, $5,000; debit Cash, $1500; credit Accounts Payable, $3,500. This error would cause __________.
A. assets to be overstated

B. assets to be understated

C. liabilities to be overstated

D. liabilities to be understated


I'm leaning towards D as my answer
Answered by Josh
A debit to a liability account was posted to the capital account. This error would cause __________.
A. assets to be overstated

B. liabilities to be overstated

C. capital to be overstated

D. None of the above answers are correct.

possibly D
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