Hello, I need help answering these 7 questions. Thank you kindly for your time a

Question

Hello, I need help answering these 7 questions. Thank you kindly for your time and your generous help.

1)
Another name for a capital expenditure is:

Revenue expenditure.

Asset expenditure.

Long-term expenditure.

Contributed capital expenditure.

Balance sheet expenditure.

2)
Extraordinary repairs:

Are revenue expenditures.

Extend the useful life of an asset beyond its original estimate.

Are credited to accumulated depreciation.

Are additional costs of plants assets that do not materially increase the asset's life.

Are expensed when incurred.

3)
Which of the following is an example of an extraordinary repair?

New tires for a truck.

Replacement of all florescent light tubes in an office.

Carpet cleaning and repair.

Replacing the roof on a manufacturing warehouse.

Routine machine maintenance.

4)
Ordinary repairs meet all of the following criteria except:

Are expenditures to keep an asset in normal operating condition.

Are necessary if an asset is to perform to expectations over its useful life.

Extend the useful life of an asset beyond its original estimate.

Include cleaning, lubricating, and normal adjusting.

Are treated as expenses.

5)
Betterments are:

Expenditures making a plant asset more efficient or productive.

Also called ordinary repairs.

Always increase an asset's life.

Revenue expenditures.

Credited against the asset account when incurred.

6)
Betterments are:

Expenditures making a plant asset more efficient or productive.

Also called ordinary repairs.

Always increase an asset's life.

Revenue expenditures.

Credited against the asset account when incurred.

7)
Revenue expenditures are also called balance sheet expenditures.

True

False

Explanation / Answer

1. Another name for Capital Expenditure is Balance sheet expenditure

2. Extraordinary repairs are Are revenue expenditures

3. Examples for Extraordinary repair is New tires for a truck

4. Ordinary repairs meet all of the following criteria except Are necessary if an asset is to perform to expectations over its useful life

5. Betterments are Expenditures making a plant asset more efficient or productive

6. Betterments are Expenditures making a plant asset more efficient or productive

7. False

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