Revenue expenditures:
A)Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities.
B)Are known as balance sheet expenditures because they relate to plant assets.
C)Extend the asset's useful life.
D)Substantially benefit future periods.
E)Are debited to asset accounts when incurred.

Question

Quizplus · Accepted Answer

Revenue expenditures are expenses incurred that do not increase the useful life or productive capabilities of the asset. These expenses are recognized as expenses in the current period rather than being capitalized and added to the asset account.

Revenue Expenditures