For each of the following items, indicate whether each would be treated as a
-Costs incurred prior to using the asset, such as costs to prepare the asset for use, installation costs
A)capital expenditure
B)revenue expenditure

Question

Quizplus · Accepted Answer

Costs incurred prior to using the asset, such as costs to prepare the asset for use and installation costs, are typically treated as capital expenditures because they are necessary for getting the asset ready for its intended use and are expected to provide benefits over multiple periods.

For Each of the Following Items, Indicate Whether Each Would