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:

Wellness Programs

Initiatives provided by an organization aimed at improving the health and well-being of its employees through prevention and lifestyle changes.

Health Care Benefits

Refers to the health insurance or plans provided by an employer to cover the medical expenses of employees and their families.

Severance Pay

Financial compensation awarded to an employee upon termination of employment, often based on length of service or terms of an employment contract, as a form of support.

Terminated

The process of ending an employee's contract with an organization, which can be voluntary or involuntary.