Which of the Following Subsequent Expenditures Would Be Capitalized

question 75

Multiple Choice

Which of the following subsequent expenditures would be capitalized?

• A)Ordinary repair.
• B)Costs that increase the service life of an asset.
• C)Routine maintenance.
• D)Both a and c.

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Definitions:

Void

Legal term indicating that an agreement or contract has no legal force and is unenforceable as if it were never made.

Identity

The condition or character as to who a person or what a thing is; the qualities, beliefs, etc., that distinguish or identify a person or thing.

Ratification

The act of formally confirming or approving an agreement, treaty, or contract, making it officially valid.

Principal

The amount of money originally invested or loaned, upon which interest and other charges are calculated.