Which of the following factors is important in distinguishing between capital and revenue expenditures?
A)The expenditure improves the property,adding to the value of the property.
B)The expenditure provides a betterment,adding to the value of the property.
C)The expenditure restores the property.
D)All of the above

Question

Quizplus · Accepted Answer

All of the factors mentioned are important in distinguishing between capital and revenue expenditures. Capital expenditures are those that improve or add value to the property, while revenue expenditures are those that restore or maintain the property's current value. A betterment is a type of capital expenditure that provides a substantial improvement to the property, such as adding a new room or upgrading the plumbing system. Therefore, all three factors are important in determining whether an expense should be classified as a capital or revenue expenditure.

Which of the Following Factors Is Important in Distinguishing Between