Which of the Following Is True with Regard to Deferred

question 36

Multiple Choice

Which of the following is true with regard to deferred maintenance?

• A) Deferred maintenance costs are delayed repair, or upkeep, measured by the outlay required to restore a plant or individual asset to full operating characteristics.
• B) Deferred maintenance costs should be measured as the amount necessary to bring the assets up to their expected operating condition.
• C) Deferred maintenance costs may be interpreted as a potential call upon government resources-an obligation that is being passed on to taxpayers of the future.
• D) Deferred maintenance costs are not useful information to readers of financial statements because they are not objective and verifiable and thus violate one of the basic qualitative characteristics of accounting information.

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