Maintenance and Repair of a Property Is an Ongoing Process

question 29

Multiple Choice

Maintenance and repair of a property is an ongoing process that can be divided into four principal categories. Which of the following classifications includes ordinary repairs to a building on a day-to-day basis (e.g. repairing a broken window, fixing a leaking roof) ?

• A) Custodial maintenance
• B) Corrective maintenance
• C) Preventive maintenance
• D) Deferred maintenance

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Definitions:

Slipping Rim

A condition where the wheel rim moves independently of the tire, often caused by a loss of friction or improper installation.

Bent Lug Stud

A damaged or misshapen lug stud, which is a bolt that is used to secure the wheel to the vehicle's hub.

Payback Method

This capital budgeting method calculates the time taken for an investment to generate cash flows to recover the initial capital outlay.

Time Value

The notion that money possessed today is more valuable than the same quantity in the future due to its potential to earn income.