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)added 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 are considered routine maintenance and repairs, and are therefore expensed when incurred.

Expenditures That Maintain the Operating Efficiency and Expected Productive Life