Costs incurred to keep assets in normal operating condition are called revenue expenditures.

Name: Costs incurred to keep assets in normal operating condition are called revenue expenditures.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Revenue expenditures are expenses incurred to maintain and keep assets in normal operating condition, such as repairs and maintenance, routine cleaning, and minor replacements. These expenses are usually recurring and do not increase the efficiency or extend the useful life of the asset.

Costs Incurred to Keep Assets in Normal Operating Condition Are