Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally
A) expensed when incurred.
B) capitalized as a part of the cost of the asset.
C) debited to the Accumulated Depreciation account.
D) not recorded until they become material in amount.

Question

Quizplus · Accepted Answer

Expenditures that maintain the operating efficiency and expected productive life of a plant asset, such as repairs and maintenance, are generally expensed when incurred because they do not extend the asset's useful life beyond its original estimate.

Expenditures That Maintain the Operating Efficiency and Expected Productive Life