An expenditure that maintains an existing asset so that it can function in the manner intended should be
A) fully expensed in the period in which it is made.
B) partially expensed in the period in which it is made.
C) fully capitalized in the period in which it is made.
D) partially capitalized in the period in which it is made.

Question

Quizplus · Accepted Answer

Expenditures that maintain an existing asset in its current condition are considered revenue expenditures and should be fully expensed in the period in which they are made. This is because they only benefit the current period by keeping the asset operational, rather than enhancing its value or extending its useful life.

An Expenditure That Maintains an Existing Asset So That It