Which of the Following Is/are Not True Regarding Repairs

question 20

Multiple Choice

Which of the following is/are not true regarding repairs?

• A)Repairs include routine costs such as for cleaning and adjusting.
• B)Repairs include the costs of restoring an asset's service potential after breakdowns or other damage.
• C)Repairs do not extend the estimated service life or increase its productive capacity of an asset beyond original expectations.
• D)U.S.GAAP and IFRS treat repair expenditures as expenses of the period when the firm makes the expenditure.
• E)Distinguishing repairs from maintenance is difficult but typically not necessary because expenditures for both are period expenses.

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Definitions:

Brain Development

The process of growth and maturation of the brain, which includes changes in structure, function, and complexity over time.

External Stimuli

External forces or conditions that influence behavior, perception, or physiological responses.

Formal Operations

The final stage in Piaget's theory of cognitive development, marked by the ability to think abstractly and reason hypothetically.

Abstract Thinking

The cognitive ability to understand concepts that are not grounded in physical reality, and to use general principles to solve problems and generate new ideas.