Capital expenditures:
A) Are revenue expenditures.
B) Extend an asset's useful life beyond its original estimate.
C) Are credited to accumulated depreciation.
D) Are additional costs of plants assets that do not materially increase the asset's life.
E) Are expensed as incurred.

Question

Quizplus · Accepted Answer

Capital expenditures are additional costs incurred to extend the useful life and increase the efficiency of an asset beyond its original estimate. These expenditures are not expensed as incurred but are capitalized and depreciated over the useful life of the asset.

Capital Expenditures