Expenditures That Maintain the Operating Efficiency and Expected Productive Life

question 108

Multiple Choice

Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally

• A) expensed when incurred.
• B) capitalized as a part of the cost of the asset.
• C) debited to the Accumulated Depreciation account.
• D) not recorded until they become material in amount.

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Definitions:

Superego

Part of the unconscious that consists of absolute moral standards internalized from one’s parents during childhood and from one’s culture.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the instinctual drives and unconscious desires.

Libido

According to Freud, psychical energy derived from physiological drives.