For each of the following items, indicate whether each would be treated as capital expenditure or revenue expenditure. (Choices may be used more than once.)
-Costs incurred prior to using the asset, such as installation and other costs to prepare the asset for use.
A)capital expenditure
B)revenue expenditure

Question

Quizplus · Accepted Answer

Costs incurred prior to using the asset, such as installation and other costs to prepare the asset for use, are considered capital expenditures as they add value to the asset and extend its useful life.

For Each of the Following Items, Indicate Whether Each Would