Which of the following is NOT true of ordinary repairs?
A) They primarily benefit the current accounting period.
B) They can be referred to as operating expenditures.
C) They maintain the expected productive life of the asset.
D) They increase the productive capacity of the asset.

Question

Quizplus · Accepted Answer

Ordinary repairs are expenses undertaken to maintain the asset in its current condition, rather than to enhance its value or extend its life. Therefore, they do not increase the productive capacity of the asset but rather ensure it continues to operate as expected.

Which of the Following Is NOT True of Ordinary Repairs