True or False?
Expenditures to maintain the operating efficiency and expected productive life of the unit are expensed as incurred.
Correct Answer = True
This question is talking about ordinary and necessary expenses as defined in the IRS tax code. An example would be a truck that needs its oil changed every 3 months or new tires after 50,000 miles. These expenses are not normally deferred and will be incurred at the time of the transaction.