Which of the Following Is Not True of Ordinary Repairs

question 25

Multiple Choice

Which of the following is not true of ordinary repairs?

• A) They primarily benefit the current accounting period.
• B) They can be referred to as revenue expenditures.
• C) They maintain the expected productive life of the asset.
• D) They increase the productive capacity of the asset.

---

Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Rival Nation

A country that competes with another, often in economic, military, or technological aspects.

Mercantilism

An economic theory and practice that promotes government regulation of the nation's economy to increase state power at the expense of rival national powers.

Trade Surplus

A situation where a country's exports exceed its imports over a given period.