Ordinary Repairs Are Expenditures to Maintain the Operating Efficiency of a Plant

question 32

Multiple Choice

Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as

• A)capital expenditures.
• B)expense expenditures.
• C)improvements.
• D)revenue expenditures.

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Definitions:

Outstanding Deposits

Deposits that have been made to an account but not yet processed or recorded by the bank.

Outstanding Checks

Checks that have been issued and recorded in the issuer's ledger but have not yet been cashed or cleared by the bank.

Reconciled Balance

The balance amount after accounting adjustments have been made to reflect true financial position.

Bank Statement

A document provided by a bank that summarizes an account holder's transactions and balances over a specific period of time.