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

Question

Quizplus · Accepted Answer

Capital expenditures are expenditures that are made to improve or increase the utility of fixed assets for more than one accounting period. These expenditures are capitalized and reflected on the balance sheet as assets, rather than expensed on the income statement like revenue expenditures. Examples of capital expenditures include the purchase of new equipment, construction of a new building, or the acquisition of another company.

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