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7 August, 06:32

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

A. Routine machine maintenance.

B. New tires for a truck.

C. Replacement of all florescent light tubes in an office.

D. Carpet cleaning and repair.

E. Replacing the roof on a manufacturing warehouse.

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  1. 7 August, 06:45
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    Answer: Option E

    Explanation: In simple words, extraordinary repair refers to those expenses that are made by an organisation on their fixed assets resulting in an increase in the life expectancy of such assets.

    These expenses usually amount sin high cost and are done only those assets which are critical for the operations of the business. Such expenses are non recurring in nature.

    Hence among all the options, The roof replacement will be the only expenditure that will increase the life of the asset, that is, warehouse.
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