Which of the Following Statements Is INCORRECT

question 25

Multiple Choice

Which of the following statements is INCORRECT?

• A)The rules for determining whether a cost should be expensed or capitalized are so complete and clear that judgment is not needed.
• B)Capital expenditures are capitalized when the cost is added to an asset account.
• C)Most companies expense all small (immaterial)costs regardless of whether the costs are capital in nature.
• D)An expense merely maintains the asset in its present condition or restores it to working order.

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Definitions:

Progression

Refers to the act of moving forward or advancing towards a more developed state or stage.

Stimulating Performance

The process of encouraging or motivating employees to improve their work output or to perform at a higher standard.

Job Descriptive Index

A survey instrument that measures employees' job satisfaction with various aspects of their job, including the work itself, supervision, pay, co-workers, and opportunities for promotion.

Job Satisfaction

The degree of satisfaction workers experience regarding their positions, duties, and workplace atmosphere.