Ordinary repairs meet all of the following criteria except:
A)Are expenditures to keep an asset in normal operating condition.
B)Are necessary if an asset is to perform to expectations over its useful life.
C)Extend the useful life of an asset beyond its original estimate.
D)Include cleaning,lubricating,and normal adjusting.
E)Are treated as expenses.

Question

Quizplus · Accepted Answer

Ordinary repairs are meant to keep an asset in normal operating condition and are necessary if the asset is to perform to expectations over its useful life. They include cleaning, lubricating, and normal adjusting and are treated as expenses. However, ordinary repairs do not extend the useful life of an asset beyond its original estimate. That is the criteria of extraordinary repairs.

Ordinary Repairs Meet All of the Following Criteria Except