A Repair That Extends the Useful Life of an Asset

question 41

Multiple Choice

A repair that extends the useful life of an asset would be considered a(n) :

• A)extraordinary repair.
• B)ordinary repair.
• C)betterment.
• D)capital expense.

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Definitions:

Agency Contract

A legal agreement where one party, the agent, acts on behalf of another party, the principal, in business transactions.

More Than One Year

Typically refers to obligations or assets that have a life or duration longer than one year from the current date.

Agency Terminates

The conclusion or end of an agency relationship between a principal and agent, which can occur through mutual agreement, completion of the task, or by other legal means.

Disclose Information

The act of making information known or revealed, often in a formal or official capacity.