Expenditures that add to the utility of fixed assets for more than one accounting period are
A) committed expenditures
B) revenue expenditures
C) utility expenditures
D) capital expenditures

Question

Quizplus · Accepted Answer

Capital expenditures are those that add to the utility of fixed assets for more than one accounting period, such as the purchase of a new piece of equipment or the construction of a building. These expenditures are typically capitalized on the balance sheet and depreciated over the useful life of the asset. Committed expenditures are those that have been contractually obligated, revenue expenditures are those that are expensed in the current period, and utility expenditures is not a commonly used term in accounting.

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