Ordinary repairs and maintenance:
A)are part of the asset cost of equipment and facilities.
B)are recorded as expenses when the dollar amount is material.
C)are always recorded as liabilities.
D)improve the asset beyond the current accounting period.

Question

Quizplus · Accepted Answer

Ordinary repairs and maintenance are recorded as expenses when the cost is material, meaning it has a significant impact on the financial statements. They are not considered part of the asset cost and do not improve the asset beyond the current accounting period. They are not recorded as liabilities unless there is an agreement to pay for them at a future date.

Ordinary Repairs and Maintenance