How should an expenditure for an ordinary repair to factory equipment be recorded?
A) As an expense in the period incurred.
B) Debited to an asset account but not depreciated over future years.
C) Debited to an asset account and depreciated over the current and future years.
D) Debited to accumulated depreciation.

Question

Quizplus · Accepted Answer

Ordinary repairs are expenses that maintain the asset in its normal operating condition and do not materially extend the asset's life or increase its productive capacity. Therefore, they should be recorded as an expense in the period incurred.

How Should an Expenditure for an Ordinary Repair to Factory