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A Company Replaced Tires on a Vehicle and Debited the Amount

Question 162

Multiple Choice

A company replaced tires on a vehicle and debited the amount to Vehicle instead of Repairs and Maintenance Expense. Which of the following would occur because of this error?


A) Expenses would be understated.
B) Net income would be understated.
C) Retained Earnings would be understated.
D) Assets would be understated.

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