Ordinary repairs and maintenance costs are incurred to maintain a long-lived productive asset and are expensed as incurred.

Question

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Ordinary repairs and maintenance costs are expensed as incurred to maintain the long-lived productive asset. This practice follows the matching principle of accounting, which requires expenses to be recognized in the period that the related revenue is recognized.

Ordinary Repairs and Maintenance Costs Are Incurred to Maintain a Long-Lived