In accounting for plant assets, which of the following outlays made subsequent to acquisition should be fully expensed in the period the expenditure is made?

Question

Quizplus · Accepted Answer

Expenditures made to maintain an existing asset so that it can function in the manner intended are considered repairs and maintenance expenses. These costs do not extend the asset's useful life or improve its efficiency but merely keep it operational, hence they should be expensed in the period they are incurred.

In Accounting for Plant Assets, Which of the Following Outlays