The accounting entry for additions and improvements that increase the usefulness of equipment includes a.debiting Cash and crediting Building or Equipment. b.debiting Building Expense or Equipment Expense and crediting Cash or a liability account. c.debiting a liability account and crediting Building or Equipment. d.debiting Building or Equipment and crediting Cash or a liability account.
The accounting entry for additions and improvements that increase the usefulness of equipment includes a.debiting Cash and crediting Building or Equipment. b.debiting Building Expense or Equipment Expense and crediting Cash or a liability account. c.debiting a liability account and crediting Building or Equipment. d.debiting Building or Equipment and crediting Cash or a liability account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The accounting entry for additions and improvements that increase the usefulness of equipment includes
a.debiting Cash and crediting Building or Equipment.
b.debiting Building Expense or Equipment Expense and crediting Cash or a liability account.
c.debiting a liability account and crediting Building or Equipment.
d.debiting Building or Equipment and crediting Cash or a liability account.
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