Extraordinary Repairs Usually Are Recorded by Making a Debit to

question 104

Multiple Choice

Extraordinary repairs usually are recorded by making a debit to

• A)a capital account.
• B)Repair Expense.
• C)a contra-asset account.
• D)an asset account.

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Definitions:

Accounting Rate of Return

A measure of the return expected on an investment, calculated by dividing the average annual profit by the initial investment cost.

After-Tax Net Income

The amount of profit a company remains with after all tax expenses have been deducted from its total income.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated as the average annual return over the investment's life divided by the initial investment cost.

Straight-Line Depreciation

An arrangement for apportioning the financial burden of a physical investment throughout its active life in equal yearly disbursements.