Westin Delivery Service, Inc. owns a delivery truck. Which of the following costs, associated with the truck, will be treated as a revenue expenditure?

Question

Quizplus · Accepted Answer

Oil change and lubrication are routine maintenance expenses that keep the truck in good operating condition and are necessary to sustain its earning capacity. These costs are considered revenue expenditures because they are necessary to generate revenue in the short term. The other options involve capital expenditures that provide long-term benefits and are capitalized as assets.