Which of the following would most likely not be a revenue expenditure?
A) Replacing carpet in the sales department oﬃces.
B) Repairing a leaky roof.
C) Putting a hydraulic lift on our delivery truck making it easier and quicker to deliver appliances.
D) Painting the exterior of our store.

Question

Quizplus · Accepted Answer

Revenue expenditures are costs that are immediately charged against revenues in the period in which they are incurred, typically relating to repairs and maintenance. In contrast, C) Putting a hydraulic lift on our delivery truck is a capital expenditure because it adds value to an existing asset and extends its useful life, rather than simply maintaining its current condition.

Which of the Following Would Most Likely Not Be a Revenue