The Journal Entry to Record a Major Expenditure to Upgrade

question 50

Multiple Choice

The journal entry to record a major expenditure to upgrade equipment that extends its useful life beyond the original estimate would include a:

• A)credit to Depreciation Expense.
• B)debit to Equipment.
• C)debit to Depreciation Expense.
• D)debit to Repair Expense.

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Definitions:

Periodic Payments

Recurring payments made over a period of time, such as monthly mortgage or insurance payments.

Voting Rights

The rights of shareholders to vote on corporate matters, such as the election of the board of directors.

Supreme Court

The highest judicial court in a country or state, which has the ultimate authority to adjudicate disputes and interpret the law.

Swing Voters

Swing voters are individuals who are not consistently loyal to a single political party and can swing their vote from one party to another, often influencing the outcome of elections.