The primary difference between ordinary and extraordinary repairs is that extraordinary repairs
A)are an expense of the current period.
B)are periodic in nature.
C)are necessary to maintain the asset in good operational condition.
D)extend the useful life or increase the residual value of the asset.

Question

Quizplus · Accepted Answer

Extraordinary repairs are those that extend the useful life or increase the residual value of the asset. Ordinary repairs, on the other hand, are necessary to maintain the asset in good operational condition but do not significantly extend the asset's life or increase its value. Therefore, option D is the correct answer.

The Primary Difference Between Ordinary and Extraordinary Repairs Is That