The following items represent common post acquisition expenditures incurred on equipment.
A. Replacement of defective parts
B. Rewiring costs to increase operating speed
C. Painting costs
D. Repair of the major circuitry of the equipment
Identify which of these items are considered to be maintenance items.
A)A and C
B)C only
C)A, B, and C
D)A, C, and D

Question

Quizplus · Accepted Answer

Maintenance items are expenditures that keep the equipment in working condition but do not enhance its value or extend its useful life. Replacement of defective parts, painting costs, and repair of major circuitry are considered maintenance.

The Following Items Represent Common Post Acquisition Expenditures Incurred on Equipment