Asked by Casey Hamilton on Jun 15, 2024

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Ordinary repairs meet all of the following criteria except:

A) Are expenditures to keep an asset in good operating condition.
B) Are necessary if an asset is to perform to expectations over its useful life.
C) Extend the useful life of an asset beyond its original estimate by several years.
D) Include cleaning,lubricating,and normal adjusting.
E) Are treated as expenses.

Ordinary Repairs

Routine maintenance expenditures necessary to keep an asset in operating condition without significantly enhancing its life or value.

Useful Life

The estimated period that an asset is expected to be useful in the operations of a business.

Operating Condition

Conditions or aspects related to the daily functionality and management of a business's core activities.

  • Perceive the differentiation between capital expenditures (betterments) and revenue expenditures (repairs).
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Fatin AsyiqinJun 21, 2024
Final Answer :
C
Explanation :
Ordinary repairs are maintenance expenditures that are necessary to keep an asset in good operating condition and ensure that it performs to expectations over its useful life. These repairs typically include cleaning, lubricating, and normal adjusting. However, they do not extend the useful life of an asset beyond its original estimate by several years. If repairs do extend the useful life of an asset, they are considered major repairs or improvements and must be capitalized. Therefore, choice C is the only criterion that does not apply to ordinary repairs.