A Company Replaced an Engine on a Vehicle and Debited

question 104

Multiple Choice

A company replaced an engine on a vehicle and debited the amount to repairs expense, rather than debiting the "vehicle" account. Which of the following would occur because of this error?

• A) Repairs Expense would be understated.
• B) Net Income would be overstated.
• C) The asset "vehicle" would be overstated.
• D) The asset "vehicle" would be understated.
• E) Shareholders' Equity would be overstated.

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Definitions:

Coronary Heart Disease

A condition characterized by the reduction of blood flow to the heart muscle due to the build-up of plaque in the arteries of the heart, leading to potential heart attacks and other cardiovascular conditions.

Headaches

Pain or discomfort in the head, scalp, or neck, often associated with tension, stress, or health issues.

Intestinal Problems

Health issues related to the gastrointestinal tract, including conditions like IBS, Crohn's disease, and ulcerative colitis.

Unwanted Pregnancy

A pregnancy that occurs without the intention or desire of one or both of the potential parents.