12. Define and discuss: (a) Maintenance. (b) Replacements. (c) Renewals. (d) Repairs.
13. When should a renewal be considered an expenditure on capital account?
14. Describe the best method of handling expenses involved in making “cost-cutting” changes.
15. How may expenditures for assets subject to depreciation be considered as deferred charges to operations?
16. The cost of repairs upon second-hand equipment, immediately after purchase, constitutes what kind of an expenditure?
17. Name a few construction costs which may justly be considered as capital expenditures.
18. Upon what is the distinction between capital and revenue expenditures often based?
19. Name the three general heads under which the assets may be classed on the balance sheet.
20. What are the principles of valuation for the assets appearing under each group?
21. Are the principles of valuation applicable to liability items?