Expenditures that increase the expected useful life or productivity of the asset are:
A) committed expenditures.
B) revenue expenditures.
C) current expenditures.
D) capital expenditures.

Question

Quizplus · Accepted Answer

Capital expenditures are expenditures that aim to increase the long-term productivity or expected useful life of the asset. These expenditures are typically significant and involve acquiring, improving, or upgrading an asset to maintain or increase its value.

Expenditures That Increase the Expected Useful Life or Productivity of the Asset