An Expenditure Made in Connection with a Machine Being Used

question 42

Multiple Choice

An expenditure made in connection with a machine being used by a company should be

• A)expensed immediately if it merely extends the useful life but does not improve the quality.
• B)expensed immediately if it merely improves the quality but does not extend the useful life.
• C)capitalized if it maintains the machine in normal operating condition.
• D)capitalized if it increases the quantity of units produced by the machine.

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Definitions:

Survival Value

The degree to which a particular behavior or trait contributes to the likelihood of survival and reproduction of an organism.

Stereotypical Responses

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Apgar

A quick test performed on a newborn at 1 and 5 minutes after birth to assess their physical condition and determine any immediate need for extra medical or emergency care.