TLR Inchas Installed a Piece of Machinery for a Total of of $76,000.In

question 82

Multiple Choice

TLR Inc.has installed a piece of machinery for a total of $76,000.In its third month of operation,repairs of $1,300 had to be made on the machine.This $1,300 would be:

• A)added to the cost of the machinery.
• B)treated as a repairs and maintenance expense.
• C)capitalized in an asset account.
• D)deducted from cost of the machinery.

---

Definitions:

Time Horizon

The length of time over which an investment or a project is expected to be pursued or a goal to be achieved.

Operating Plan

A detailed description of how a company's operational activities will be carried out to meet goals and objectives, including production, staffing, and inventory requirements.

Trade Credit

Credit extended by suppliers in which the buyer agrees to pay for goods and services received now at a later date.

Short-Term Loan

a borrowing arrangement designed to provide funds for a short period, typically less than a year, and is used for immediate financial needs.