An Expenditure That Maintains an Existing Asset So That It

question 82

Multiple Choice

An expenditure that maintains an existing asset so that it can function in the manner intended should be

• A) fully expensed in the period in which it is made.
• B) partially expensed in the period in which it is made.
• C) fully capitalized in the period in which it is made.
• D) partially capitalized in the period in which it is made.

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Definitions:

Investing

Allocating resources, usually money, with the expectation of generating an income or profit.

Saving

The act of setting aside a portion of current income for future use, typically in a secure form such as a bank account or investment, to meet long-term goals or emergencies.

Shares

Shares represent an ownership stake in a company or financial asset, entitling the holder to a proportional share of the profits through dividends, if such profits are distributed.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to make available.