Identify the following expenditures :
-Replacement of worn out gears on factory machinery.
A) capital expenditures
B) revenue expenditures.

Question

Quizplus · Accepted Answer

The replacement of worn out gears on factory machinery is considered a revenue expenditure because it is a cost associated with the repair and maintenance of existing equipment, aimed at keeping the asset in its original working condition rather than enhancing its value or life.

Identify the Following Expenditures