Which of the Following Would Be Expensed, Rather Than Capitalised

question 44

Multiple Choice

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

• A)Addition to storage capacity
• B)Major engine overhaul
• C)Oil change and lubrication
• D)Modification for new use

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Definitions:

Network Externalities

The effect that an additional user of a good or service has on the value of that product to others, often leading to a positive feedback loop.

Patents

Legal rights granted to inventors that prevent others from making, using, or selling their invention without permission for a certain period of time.

Innovation

The introduction of new ideas, goods, services, and practices to the market, which significantly improves or enhances value.

Invention

The creation of a new product, process, or idea that did not exist before, which typically involves innovation and creativity.