Which of the following is not true of ordinary repairs? a. They primarily benefit the current accounting period. b. They can be referred to as revenue expenditures. c. They maintain the expected productive life of the asset. d. They increase the productive capacity of the asset

Question

Business

Declan Wheeler

6 September, 17:24

Which of the following is not true of ordinary repairs? a. They primarily benefit the current accounting period. b. They can be referred to as revenue expenditures. c. They maintain the expected productive life of the asset. d. They increase the productive capacity of the asset

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Answers (1)

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Kash Maldonado · Answer 1

They increase the productive capacity of the asset

Explanation:

Ordinary repairs are repairs to an asset that doesn't increase its useful life or make the asset more productive. It is also known as revenue expenditure. Ordinary repairs are expensed when incurred.

Ordinary repairs are carried out to maintain an asset.