Ace Concrete Inc. made a $500 ordinary repair to a piece of equipment. Ace's accountant debited this amount to the asset account, Equipment, and decreased Cash. Was this the correct approach to record the transaction, and if not, why not? O No, the correct entry would be an increase to Cash and to Maintenance and Repairs Expense. O No, the correct entry would be an increase to Maintenance and Repairs Expense and decrease to Cash. O No, the correct entry would be a decrease O Cash and to Maintenance and Repairs Expense. O Yes, this was the correct entry.
Ace Concrete Inc. made a $500 ordinary repair to a piece of equipment. Ace's accountant debited this amount to the asset account, Equipment, and decreased Cash. Was this the correct approach to record the transaction, and if not, why not? O No, the correct entry would be an increase to Cash and to Maintenance and Repairs Expense. O No, the correct entry would be an increase to Maintenance and Repairs Expense and decrease to Cash. O No, the correct entry would be a decrease O Cash and to Maintenance and Repairs Expense. O Yes, this was the correct entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Ace Concrete Inc. made a $500 ordinary repair to a piece of equipment. Ace's accountant debited this amount to the asset account,
Equipment, and decreased Cash. Was this the correct approach to record the transaction, and if not, why not?
O No, the correct entry would be an increase to Cash and to Maintenance and Repairs Expense.
No, the correct entry would be an increase to Maintenance and Repairs Expense and decrease to Cash.
O No, the correct entry would be a decrease to Cash and to Maintenance and Repairs Expense.
O Yes, this was the correct entry.
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