If a Truck's Engine Is Overhauled for $8,000,the Journal Entry

question 128

Multiple Choice

If a truck's engine is overhauled for $8,000,the journal entry would normally include a debit to:

• A)Vehicles.
• B)Accounts Payable.
• C)Depreciation Expense.
• D)Cash.

---

Definitions:

Discharged

This term refers to the process by which an obligation or debt is formally nullified or released, such as when a bankruptcy court discharges a debtor's obligations.

Chapter 12

A section of the U.S. Bankruptcy Code providing for debt relief to family farmers and fishermen.

Family Farmer

A designation used in bankruptcy law for a farmer or fisherman with regular annual income that allows them to adjust debts under Chapter 12.

Debt Cap

A limit set on the amount of debt that an organization or government may incur.