What is an extraordinary repair to a building?
A) It is a revenue expenditure and it is debited to an expense account.
B) It is a capital expenditure and it is debited to an asset account.
C) It is a capital expenditure and it is debited to an expense account.
D) It is a revenue expenditure and may be debited to accumulated depreciation.

Question

Quizplus · Accepted Answer

Extraordinary repairs to a building are considered capital expenditures because they extend the useful life of the asset, improve its value, or adapt it to a different use. These costs are debited to an asset account, not an expense account, reflecting their nature as investments in the asset's future utility rather than ordinary operating expenses.

What Is an Extraordinary Repair to a Building