Asked by Oguche Agnebb on May 04, 2024
Verified
Expenditures for changing oil in a machine or repainting a car would be:
A) added to the cost of the asset.
B) added as a capital expenditure.
C) charged to an expense account.
D) added as a betterment.
Capital Expenditure
Funds used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings.
Expense Account
An accounting category used for tracking money spent on operating activities of a business.
Repainting
Repainting involves updating or applying a fresh coat of paint to an object or area to enhance its appearance or protect it from damage.
- Differentiate between capital expenditures and revenue expenditures.
Verified Answer
Learning Objectives
- Differentiate between capital expenditures and revenue expenditures.
Related questions
Extraordinary Repairs Are Expenditures Extending the Asset's Useful Life Beyond ...
Revenue Expenditures Are Also Called Balance Sheet Expenditures
Revenue Expenditures,also Called Income Statement Expenditures,are Additional Costs of Plant ...
Betterments Are a Type of Capital Expenditure
Revenue Expenditures Do NOT Include ...