The main difference between ordinary repairs and extraordinary repairs is:
A)ordinary repairs cost less.
B)ordinary repairs are expenditures for routine maintenance and upkeep,whereas extraordinary repairs increase an asset economic usefulness in the future through increased efficiency,capacity,or longer life.
C)extraordinary repairs only maintain the asset for a short time,whereas ordinary repairs increase the usefulness of assets beyond their original condition.
D)extraordinary repairs are expenses,not expenditures.

Question

Quizplus · Accepted Answer

Ordinary repairs refer to routine maintenance and upkeep, while extraordinary repairs increase the economic usefulness of an asset in the future through increased efficiency, capacity, or longer life. Therefore, the main difference between the two is the impact on the asset's economic usefulness. Option A is incorrect as it only considers the cost difference between the two types of repairs. Option C is incorrect as it implies that ordinary repairs do not maintain the asset for a long time, which is not true. Option D is incorrect as extraordinary repairs are also considered expenditures.

The Main Difference Between Ordinary Repairs and Extraordinary Repairs Is