The Correct Statement Concerning Subsequent Costs Incurred in Relation to a Depreciable

question 38

Multiple Choice

The correct statement concerning subsequent costs incurred in relation to a depreciable asset after its original acquisition is:

• A)The replacement of the tyres on a motor would add to the expected life of the vehicle
• B)Subsequent costs should nearly always be capitalised rather than charged to an expense account
• C)If the subsequent cost of replacing part of an item of equipment is added to the carrying amount of that asset then the carrying amount of the part that is replaced must be decommissioned
• D)The painting of a building would normally be considered an improvement and capitalised

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Definitions:

Symptoms

The physical or mental features that are regarded as indicating a condition or disease.

Schizophrenia

A psychiatric condition manifesting in warped cognition, feelings, speech, self-perception, and conduct.

Selective Serotonin Reuptake Inhibitors

A class of drugs used in the treatment of depression and anxiety disorders, by increasing serotonin levels in the brain.

Sexual Functioning

A term referring to the various physical and psychological aspects of sexual performance and satisfaction.