Which of the Following Statements Is INCORRECT

question 25

Multiple Choice

Which of the following statements is INCORRECT?

• A)The rules for determining whether a cost should be expensed or capitalized are so complete and clear that judgment is not needed.
• B)Capital expenditures are capitalized when the cost is added to an asset account.
• C)Most companies expense all small (immaterial)costs regardless of whether the costs are capital in nature.
• D)An expense merely maintains the asset in its present condition or restores it to working order.

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Definitions:

Electronic Signatures in Global and National Commerce Act

A U.S. law that facilitates the use of electronic records and signatures in interstate and foreign commerce by ensuring their validity and legal effect.

Technological Forces

Innovations and advancements in technology that impact various industries and markets, influencing business strategies and consumer behaviors.

Radio Frequency (RFID) Tags

Small electronic devices that use radio waves to transmit data for the purpose of identifying and tracking objects.

Electricity Conduct

The ability of a material to allow the flow of electrical current through it; essential for the functioning of electronic devices and power transmission.