Which of the following is/are not true regarding repairs?
A)Repairs include routine costs such as for cleaning and adjusting.
B)Repairs include the costs of restoring an asset's service potential after breakdowns or other damage.
C)Repairs do not extend the estimated service life or increase its productive capacity of an asset beyond original expectations.
D)U.S.GAAP and IFRS treat repair expenditures as expenses of the period when the firm makes the expenditure.
E)Distinguishing repairs from maintenance is difficult but typically not necessary because expenditures for both are period expenses.

Question

Quizplus · Accepted Answer

Routine costs such as cleaning and adjusting are typically considered maintenance, not repairs. Repairs are generally associated with restoring an asset's service potential after breakdowns or damage.

Which of the Following Is/are Not True Regarding Repairs