Expenditures that create the expectation of future benefits applicable beyond the current period are called:
A)capital expenditures
B)revenue expenditures
C)ordinary expenditures
D)accelerated expenditures

Question

Quizplus · Accepted Answer

Capital expenditures are expenditures that create the expectation of future benefits applicable beyond the current period. These expenditures are typically investments in long-term assets such as property, plant, and equipment that are expected to provide economic benefits for many years to come. Revenue expenditures, on the other hand, are expenditures that are incurred for the purpose of maintaining or enhancing the current level of operations and are typically expensed in the current period. Ordinary expenditures and accelerated expenditures are not commonly used accounting terms and do not accurately describe this type of expenditure.

Expenditures That Create the Expectation of Future Benefits Applicable Beyond