Select the true statement:
A)Revenue expenditure is added to the cost of an asset and depreciated
B)Capital expenditure includes costs of repairs after the asset is installed and first used
C)Revenue expenditure provides benefits over several accounting periods
D)Capital expenditure includes expenses to get the asset into location and ready for use

Question

Quizplus · Accepted Answer

Capital expenditure includes costs associated with acquiring or upgrading physical assets such as buildings and machinery, which includes expenses to get the asset into location and ready for use. This is in contrast to revenue expenditure, which covers the costs of daily operations and repairs that do not extend the life of the asset.

Select the True Statement