For each of the following items, indicate whether each would be treated as a
-Costs incurred after putting the asset into service which keep the asset in normal operating condition
A)capital expenditure
B)revenue expenditure

Question

Quizplus · Accepted Answer

Revenue expenditure refers to the costs incurred for maintaining an asset in its normal operating condition. These are typically recurring expenses necessary for the day-to-day functioning of the asset and do not increase its life or efficiency beyond its original condition. Capital expenditure, on the other hand, refers to costs that are capitalized on the balance sheet because they are expected to provide benefits over multiple periods, such as increasing the asset's useful life, efficiency, or capacity.

For Each of the Following Items, Indicate Whether Each Would