The Primary Difference Between Ordinary and Extraordinary Repairs Is That

question 161

Multiple Choice

The primary difference between ordinary and extraordinary repairs is that extraordinary repairs

• A)are an expense of the current period.
• B)are periodic in nature.
• C)are necessary to maintain the asset in good operational condition.
• D)extend the useful life or increase the residual value of the asset.

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Definitions:

Existing Promisor

A party in a contractual agreement who has previously committed to perform a specific duty or obligation.

Contractual Promises

Commitments made within a contract that are binding and enforceable by law, requiring parties to perform or refrain from certain actions.

Absolute Promises

Unconditional commitments made by one party to another, requiring full performance without contingencies or reliance on future events.

Implied-in-Law Condition

A legally imposed condition in a contractual agreement, not explicitly stated, created to ensure fairness and justice, often derived from the nature of the agreement or parties' intentions.