Listed Below Are Five Terms Followed by a List of Phrases

question 67

Short Answer

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
a.Capitalize
b.Materiality
c.Repairs and maintenance
d.Addition
e.Improvement
Phrases:
_____ Occurs when we add a new major component to an existing asset.
_____ The cost of replacing a major component of an asset.
_____ Large enough to influence an investor or creditor's decision.
_____ Recording an expenditure as an asset.
_____ Expenses after acquisition that maintain a given level of benefits.

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Definitions:

Organizational Buyers

Entities such as companies, governments, and institutions that purchase goods and services for organizational purposes rather than personal use.

Not-for-Profit Organizations

Entities that operate for purposes other than making profit, often focusing on social, educational, or charitable work.

Raw Materials

Basic substances in their natural, modified, or semi-processed states, used as inputs to production or manufacturing processes.

Finished Goods

Products that have completed the manufacturing process and are ready for sale to consumers or for use as components in other products.