Multiple Choice
Compton Inc.made a $500 ordinary repair to a piece of equipment.Compton's accountant added this amount to the asset account Equipment and decreased Cash.Was this action correct and if not why not?
A) Yes this action was correct.
B) No the correct action would be to increase Maintenance and Repairs Expense and decrease Cash.
C) No the correct action would be to increase Cash and decrease Maintenance and Repairs Expense.
D) No the correct action would be to decrease Service Revenue and decrease Cash.
Correct Answer:
Verified
Correct Answer:
Verified
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