Which of the Following Statements Is Incorrect

question 35

Multiple Choice

Which of the following statements is incorrect?

• A)Ordinary repairs and maintenance decrease net income.
• B)Capital expenditures decrease assets.
• C)Ordinary repairs and maintenance are recurring in nature.
• D)Additions and improvements to a depreciable asset occur infrequently.

Comprehend the primary components and purpose of fundamental financial statements including the balance sheet, income statement, statement of retained earnings, and statement of cash flows.

Calculate and analyze the return on assets to assess a company's profitability in relation to its total assets.

Understand the impact of transactions on the accounting equation and financial statements.

Recognize the categorization of business activities into operating, investing, and financing activities.

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Definitions:

Sublimation

Used unconsciously to express socially unacceptable instinctive drives or impulses in approved and acceptable ways.

Painful Situation

A distressing or discomforting circumstance that causes mental or physical pain.

Projection

A defense mechanism of trying to blame another for one’s own inadequacies.

Compensation

Payment or reward given for services rendered, work done, or for some injury or loss.