Revenue expenditures:
A) Are additional costs of property, plant and equipment that do not materially increase the asset's life or its productive capabilities.
B) Are known as balance sheet expenditures.
C) Extend the asset's useful life.
D) Substantially benefit future periods.
E) Are debited to asset accounts.

Question

Quizplus · Accepted Answer

Revenue expenditures are expenses incurred in the normal operations of a business that are meant to maintain or generate revenue, rather than increase the value of an asset or extend its useful life. Option A accurately describes revenue expenditures as costs of property, plant and equipment that do not materially increase the asset's life or its productive capabilities.

Revenue Expenditures