A $200 credit to Interest Payable was instead recorded in error as a $200 credit to Cash in an adjusting entry, which has been posted to the ledger accounts. Which of the following is the result of this error?
A. Total assets are understated by $200.
B. Net income is overstated by $200.
C. Total liabilities are overstated by $200.
D. The trial balance is out of balance by $200.
Answer: A
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