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?

Question

Quizplus · Accepted Answer

The error would result in the asset "vehicle" being understated as the cost of the new engine was not recorded in the vehicle account. Instead, it was recorded in the repairs expense account, which would be the incorrect account for this transaction.

A Company Replaced an Engine on a Vehicle and Debited