Which of the Following Would Be Capitalised and Depreciated,rather Than

question 14

Multiple Choice

Which of the following would be capitalised and depreciated,rather than expensed?

• A)Replacement of tyres
• B)Paint job
• C)Modification for new use
• D)Normal repair of engine

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Definitions:

Roof Tiles

Specially designed pieces, typically made of clay, concrete, metal, or synthetic materials, used to cover roofs.

Destination Contract

A contract specifying that the seller will bear the risk and the cost of delivering goods to a specific location.

Shipment Contract

A contractual agreement where the seller is obligated to transport goods to a specific destination, with risk passing to the buyer when the goods are delivered to the carrier.

F.O.B. Hilltop Farm

A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped from Hilltop Farm.