Which of the following statements is incorrect?
A)Ordinary repairs and maintenance decrease net income.
B)Capital expenditures decrease assets.
C)Ordinary repairs and maintenance are recurring in nature.
D)Additions and improvements to a depreciable asset occur infrequently.

Question

Quizplus · Accepted Answer

Capital expenditures actually increase assets rather than decrease them. They are costs a company incurs to acquire or upgrade physical assets such as property, industrial buildings, or equipment. This is in contrast to ordinary repairs and maintenance, which are expensed and reduce net income.

Which of the Following Statements Is Incorrect