Which of the following costs related to the purchase of production equipment incurred by Newark Company during 2015 would be considered a revenue expenditure?

Question

Quizplus · Accepted Answer

Repair and maintenance costs during the equipment's first year of service are considered revenue expenditures because they are expenses related to the ongoing operation and maintenance of the equipment, rather than a one-time capital expense. The other options are all considered capital expenditures because they are costs related to acquiring the equipment itself.

Which of the Following Costs Related to the Purchase of Production