Asked by Oguche Agnebb on May 04, 2024

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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.
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ZK
Zybrea KnightMay 07, 2024
Final Answer :
C
Explanation :
Expenditures for changing oil in a machine or repainting a car are considered maintenance expenses. These costs are charged to an expense account in the period they are incurred because they are necessary for the upkeep of the asset but do not extend its useful life or improve its productive capacity significantly.