Which of the following statements is incorrect?
A)Replacement of a truck's tires would be a capital expenditure.
B)Replacement of carpet in an office,damaged by a coffee spill,would be a repairs expense.
C)Replacement of a roof on a newly purchased building before using it as a store would be a capital expenditure.
D)The cost of repainting a hallway would be maintenance expense.

Question

Quizplus · Accepted Answer

Replacement of a truck's tires is considered a maintenance expense, not a capital expenditure, as it is a routine cost necessary to keep the asset in working condition.

Which of the Following Statements Is Incorrect