Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as

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Ordinary repairs are considered revenue expenditures, as they are expenses incurred to maintain the asset's normal operating efficiency. Capital expenditures, on the other hand, are expenditures that increase an asset's useful life or improve its efficiency beyond its original condition. Improvements are also capital expenditures.

Ordinary Repairs Are Expenditures to Maintain the Operating Efficiency of a Plant