Question

Ordinary repairs:

A) Are expenditures to keep an asset in normal operating condition.
B) Are necessary if an asset is to perform to expectations over its useful life.
C) Are treated as expenses
D) Include cleaning, lubricating, and normal adjusting.
E) All of these

Answer 1

The correct option is A) Are expenditures to keep an asset in normal operating condition. Ordinary repairs are expenses for maintaining an asset in a condition to perform as expected, including routine maintenance.

Step-by-step explanation:

Ordinary repairs refer to the expenditures incurred to keep an asset in normal operating condition, to ensure that the asset performs to expectations over its useful life, and include activities like cleaning, lubricating, and normal adjusting. These types of repairs are generally expensed in the period in which they occur because they only benefit the current period and do not extend the useful life of the asset.

In the context of the changing economic and environmental landscape, where the cost of manufacturing new items and disposal can be prohibitive, there is a growing emphasis on durability, repairability, and high-quality goods that can withstand time, leading to a decrease in planned obsolescence. Products are increasingly being designed to enable easier upgrades or repairs, reflecting a shift in consumer values towards sustainability and long-term cost savings.