Which of the following is not a characteristic of an ordinary repair?
A) An expense of the current period.
B) Periodic in nature.
C) Necessary to maintain the asset in good operational condition.
D) Extends the useful life or increases the residual value of the asset.

Question

Quizplus · Accepted Answer

Ordinary repairs are necessary to maintain an asset in good operating condition and are periodic in nature, but they do not extend the useful life or increase the residual value of the asset. Instead, they are intended to maintain the asset's existing level of usefulness. If a repair does extend the asset's useful life or increase its residual value, it would instead be classified as a capital expenditure or improvement.

Which of the Following Is Not a Characteristic of an Ordinary