Question

Which of the following pertaining to ordinary repairs is false?

a) they include activities such as cleaning, lubricating, and changing oil.
b) their costs are reported as expenses on the current-period income statement.
c) they are treated as expenses. they are expenditures to keep an asset in good operating condition.
d) they extend the useful life of an asset beyond its original estimate by several years.

Answer 1

The false statement regarding ordinary repairs is that d) they extend the useful life of an asset beyond its original estimate by several years. Ordinary repairs are routine maintenance to keep an asset in good condition and are expensed in the period in which they occur.

Step-by-step explanation:

The statement pertaining to ordinary repairs that is false is d) they extend the useful life of an asset beyond its original estimate by several years.

Ordinary repairs refer to routine maintenance and upkeep activities that help keep an asset operational. Such activities include cleaning, lubricating, and changing oil. The costs for these activities are correctly reported as expenses on the current-period income statement as mentioned in option b) and implicitly in c), reflecting that these expenditures are part of the ongoing cost of using the asset.

Extending the useful life of an asset substantially would typically fall under the category of capital expenditure or improvement rather than an ordinary repair.