Question

If the credit to record the purchase of supplies on account is not​ posted, A. assets will be understated. B. ​stockholders' equity will be understated. C. liabilities will be understated. D. expenses will be overstated.

Answer 1

The answer is A, assets will be understated.

Step-by-step explanation:

When a purchase is registered, it must be like this:

+credit for the supplies

+debit for the liability, or -credit for the cash used

If the registration of the asset is not made, then the assets will be understated and the accounting equation does not balance, because the liability or the -credit of asset cash has been registered.

Understated means two things, the amount is not the correct amount, and the amount is less than the true amount. In other words, the amount is too small.