How should an expenditure for an ordinary repair to factory equipment be recorded?
A) Debited to accumulated depreciation.
B) Debited to an asset account and depreciated over the current and future years.
C) As an expense in the period incurred.
D) Debited to an asset account but not depreciated over future years.

Question

Quizplus · Accepted Answer

An expenditure for an ordinary repair to factory equipment should be recorded as an expense in the period incurred. This is because it does not extend the useful life of the asset and does not increase its productivity or efficiency.

How Should an Expenditure for an Ordinary Repair to Factory