An Expenditure for the Repair of an Asset Must Be

question 59

Multiple Choice

An expenditure for the repair of an asset must be capitalized if it

• A) Maintains an asset in working order
• B) Requires prior approval by management
• C) Exceeds a fixed percentage of the asset's book value
• D) Benefits the company over several periods

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Definitions:

Root Diameter

The diameter of a gear or screw measured at the base of the teeth or threads, where the material is the thickest.

Bevel Gears

Gears with intersecting shafts and conically shaped teeth that are used to change the axis of rotation in machinery.

Intersecting Axes

The point or line where two or more axes meet or cross each other.

Inside Diameter

The linear measurement of the interior of a cylinder or tube from one side to the opposing side.