If the Cost of a Major Service on a Motor

question 16

Multiple Choice

If the cost of a major service on a motor vehicle, which did not increase the vehicles' useful life was incorrectly capitalised and added to the carrying amount of the vehicle rather than being expensed, expenses would be:

• A) overstated, fixed assets would be overstated and equity would be understated.
• B) understated, fixed assets would be overstated and equity would be overstated.
• C) understated, fixed assets would be understated and equity would be overstated.
• D) understated, fixed assets would be overstated and equity would be understated.

---

Definitions:

Cystostomy

Cystostomy is a surgical procedure to create an opening in the urinary bladder for urine to exit the body when normal urination is not possible.

Surgery Section

A specialized department within a hospital where surgical operations are carried out.

NEC

An abbreviation for "Not Elsewhere Classified," used in coding systems to indicate items that do not fit into existing categories.

ICD-10-CM

The International Classification of Diseases, Tenth Revision, Clinical Modification; a system used in healthcare to classify and code diagnoses, symptoms, and procedures.