Which of the following is not true for an operating expenditure? A)It is recorded with a debit to a statement of financial position account. B)It benefits the current period only. C)It is incurred to maintain an asset in its normal operating condition. D)It often recurs.

Question

Quizplus · Accepted Answer

Operating expenditures are expenses associated with the day-to-day operations of a business. They are recorded as expenses in the income statement (profit and loss statement), not as a debit to a statement of financial position account (balance sheet). Choices B, C, and D describe characteristics of operating expenditures: they benefit the current period only, are incurred to maintain assets in their normal condition, and often recur, respectively.

Which of the Following Is not True for an Operating