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.