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:

Biological Preparedness

Referring to the tendency of animals to learn certain associations, such as taste and nausea, with only one or few pairings due to the survival value of the learning.

Conditioned Taste Aversions

A learned aversion to a particular food or drink because it has been associated with an unpleasant or nauseating experience.

Long-Term Spontaneous Recovery

A phenomenon in psychology where previously extinguished responses re-emerge after a period without exposure to the conditioned stimulus.

Fear-Producing Stimulus

An object, event, or situation that triggers a fear response, activating the fight-or-flight mechanism in the body.