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.

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Definitions:

Tenant-Days

A measure used in hospitality and property management to calculate the total number of days that tenants or guests occupy a space over a certain period.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of interest and taxes.

Revenue and Spending Variance

The difference between actual and budgeted figures for both income and expenditures, respectively.

Flexible Budget

A budget that varies with levels of activity or output, allowing organizations to more accurately forecast costs and revenues over various levels of production.