Expenditures to maintain the operating efficiency and expected productive life of a plant asset are
A)additions.
B)ordinary repairs.
C)improvements.
D)capital expenditures.

Question

Quizplus · Accepted Answer

Expenditures made to maintain the operating efficiency and expected productive life of plant assets are classified as ordinary repairs. Ordinary repairs are revenue expenditures and are charged to the period in which they are incurred. They do not increase the value or useful life of the asset beyond its original estimate, nor do they enhance or improve the asset in any way.

Expenditures to Maintain the Operating Efficiency and Expected Productive Life