Which of the following accurately describes the treatment of ordinary and extraordinary repairs?
A)Ordinary repairs are expensed as incurred;extraordinary repairs are expensed as incurred.
B)Ordinary repairs are treated as a capital expenditure;extraordinary repairs are expensed as incurred.
C)Ordinary repairs are expensed as incurred;extraordinary repairs are treated as a capital expenditure.
D)Ordinary repairs are treated as a capital expenditure;extraordinary repairs are treated as a capital expenditure.

Question

Quizplus · Accepted Answer

Ordinary repairs and maintenance are expensed as incurred while extraordinary repairs are capitalized (treated as capital expenditures).

Which of the Following Accurately Describes the Treatment of Ordinary