Expenditures that add to the utility of fixed assets for more than one accounting period are
A)capital expenditures
B)revenue expenditures
C)utility expenditures
D)committed expenditures

Question

Quizplus · Accepted Answer

Capital expenditures are used to enhance the utility of fixed assets for more than one accounting period. These expenditures typically involve acquiring fixed assets, improving existing assets or extending their useful life beyond their initial estimate. In contrast, revenue expenditures are used to maintain or repair fixed assets and do not add to their long-term value. Therefore, capital expenditures are the better choice for this scenario.

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