A Company Has Incurred Some Routine Maintenance Costs

question 113

Multiple Choice

A company has incurred some routine maintenance costs. If they decide to capitalize these costs instead of expensing them, what would be the effect on cash from operations and cash from investing activities in that period?

• A) Cash from operations would increase; cash from investing would increase.
• B) Cash from operations would increase; cash from investing would decrease.
• C) Cash from operations would decrease; cash from investing would increase.
• D) Cash from operations would decrease; cash from investing would decrease.

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