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:

Depreciated

Refers to the reduction in value of an asset over time due to wear and tear or obsolescence.

Useful Life

The estimated period over which an asset is expected to be useful in the operations of a business before it is fully depreciated.

Broker Commission

A fee paid to a broker for executing a transaction or providing specialized services.

Acquisition Cost

The total cost associated with purchasing an asset, including the price and all other costs to prepare the asset for use.