Under GAAP, Which One of the Following Types of Costs

question 42

Multiple Choice

Under GAAP, which one of the following types of costs should not be capitalized?

• A)rearrangements
• B)routine maintenance
• C)replacements
• D)additions

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Definitions:

State Taxes

Taxes imposed by individual state governments, which can include income, sales, and property taxes.

Itemized Deductions

Deductions from taxable income that are enumerated and individually taken, as opposed to taking a standard deduction. These can include expenses for healthcare, taxes paid, interest expenses, and charitable contributions.

State Income Taxes

Taxes levied by individual states on the income of residents and sometimes non-residents earning income within the state.

Schedule A

A form used by U.S. taxpayers to itemize deductions on their federal income tax return.