Westin Delivery Service Company owns a delivery truck.Which of the following costs,associated with the truck,will be treated as a revenue expenditure?

Question

Quizplus · Accepted Answer

Oil change and lubrication are regular maintenance expenses that are necessary to keep the truck in good working condition and ensure its continued operation. These costs would be considered revenue expenditures as they are incurred in the normal course of business to maintain the truck's current capacity.

B, C, and D would be considered capital expenditures as they involve significant additions, improvements, or alterations to the truck that increase its value, expand its capacity, or modify its use. These types of costs are generally capitalized and depreciated over time, as they provide benefits that extend beyond the current period.

Westin Delivery Service Company Owns a Delivery Truck