For each of the following items, indicate whether each would be treated as a
-Costs related to acquiring an asset, such as sales or excise taxes, transportation, insurance during shipment
A)capital expenditure
B)revenue expenditure

Question

Quizplus · Accepted Answer

Costs related to acquiring an asset, such as sales or excise taxes, transportation, insurance during shipment, are typically treated as capital expenditures as they are considered necessary to get the asset up and running for its intended purpose. These expenses are added to the cost of the asset and depreciated over its useful life.

For Each of the Following Items, Indicate Whether Each Would