Revenue expenditures:
A)include expenditures for betterments
B)include expenditures for extraordinary repairs
C)are expenditures that provide benefits only during the current accounting period
D)are expenditures that extend the remaining useful life of an operational investment

Question

Quizplus · Accepted Answer

Revenue expenditures are expenses that do not result in an addition to the fixed asset base and provide benefits only during the current accounting period. They are usually incurred to maintain a fixed asset in its operating condition. Examples include repairs, maintenance, rent, wages, and so on. Betterments and extraordinary repairs are capital expenditures, which improve or extend the useful life of an asset and are typically capitalized and depreciated over their useful life.

Revenue Expenditures