Ordinary Repairs and Maintenance Always

question 11

Multiple Choice

Ordinary repairs and maintenance always:

• A)are part of the asset cost of equipment and facilities.
• B)are recorded as expenses.
• C)are recorded as liabilities.
• D)improve the asset beyond the current accounting period.

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Definitions:

Earnings Rate

The rate of return on an investment or the rate at which a company or asset is generating income, often expressed as a percentage.

Capital Rationing

A financial strategy employed by companies to limit or restrict the amount of new investments or projects they undertake due to limited resources.

Investment Capital

Funds invested in a business by its owners or shareholders with the expectation of generating a return, used for acquiring assets or financing operations.

Investment Funds

Pooled funds from multiple investors used to collectively invest in securities such as stocks, bonds, and other assets, managed by financial professionals.