Revenue expenditures are additional costs of plant assets that materially increase the assets' life or productive capabilities.

Question

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Revenue expenditures are costs that are necessary for the day-to-day operations of a business, such as repairs and maintenance. They do not materially increase the life or productive capabilities of plant assets. Capital expenditures, on the other hand, are costs that are incurred to acquire or improve plant assets and can materially increase their life or productive capabilities.

Revenue Expenditures Are Additional Costs of Plant Assets That Materially