One of the primary objectives in examining the repairs and maintenance accounts is to obtain evidence that
A) expenditures of equipment have not been charged to expense.
B) the actual amount recorded is the same as the budgeted amount.
C) expenditures for equipment have been recorded in the proper period.
D) revenue expenditures made on behalf of equipment have been recorded in the proper period.

Question

Quizplus · Accepted Answer

Examining the repairs and maintenance accounts helps in obtaining evidence that expenditures of equipment have not been charged to expense. This ensures that capital expenditures on equipment have been properly classified and recorded in the books. B and C are not the primary objectives in examining the repairs and maintenance accounts. D is partly correct, but it does not cover all the aspects of examining repairs and maintenance accounts.

One of the Primary Objectives in Examining the Repairs and Maintenance