Revenue expenditures do NOT include:A) additions to existing plant assets.B) changing tires on a car.C) changing oil in a car.D) All of the above are revenue expenditures.

Question

Revenue expenditures do NOT include:A)  additions to existing plant assets.B)  changing tires on a car.C)  changing oil in a car.D)  All of the above are revenue expenditures.

Andrea Panta · Accepted Answer

Final Answer : A, Explanation :  Additions to existing plant assets are considered capital expenditures, not revenue expenditures, because they are intended to improve or extend the life of the asset, rather than just maintain it.

Revenue expenditures do NOT include:

A) additions to existing plant assets.
B) changing tires on a car.
C) changing oil in a car.
D) All of the above are revenue expenditures.

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