Small expenditures for what ordinarily are considered revenue expenditures are expensed as incurred.

Question

Quizplus · Accepted Answer

Small expenditures for items such as office supplies, minor repairs, or maintenance are typically considered revenue expenditures and are generally expensed as incurred, rather than being capitalized and recognized as an asset. This is because the benefits of these expenditures are consumed within the current accounting period, and they do not provide future economic benefits that would justify capitalization.

Small Expenditures for What Ordinarily Are Considered Revenue Expenditures Are