A company made some expensive repairs to equipment and buildings during the past year.(a) What criteria is used in determining whether the repairs are capital expenditures or revenue expenditures, and (b) what is the effect on the company's financial statements if they are incorrectly recorded as capital expenditures?

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The Answer of A company made some expensive repairs to equipment and buildings during the past year.(a) What criteria is used in determining whether the repairs are capital expenditures or revenue expenditures, and (b) what is the effect on the company's financial statements if they are incorrectly recorded as capital expenditures?

A Company Made Some Expensive Repairs to Equipment and Buildings