Extraordinary repairs:
A)Are revenue expenditures.
B)Extend the useful life of an asset beyond its original estimate.
C)Are credited to accumulated depreciation.
D)Are additional costs of plants assets that do not materially increase the asset's life.
E)Are expensed when incurred.

Question

Quizplus · Accepted Answer

Extraordinary repairs are costs incurred to extend the useful life of an asset beyond its original estimate. They are not considered revenue expenditures and are not expensed when incurred. They do not affect accumulated depreciation, as they are capitalized and added to the cost of the asset. They are different from ordinary repairs or maintenance expenses, which are expensed when incurred and do not extend the useful life of an asset.

Extraordinary Repairs