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

Question

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

Josh · Answer

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