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 revenue 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 do not increase the productive capacity of an asset, but rather maintain it. Therefore, choice D is not true.

Which of the Following Is Not True of Ordinary Repairs