Revenue expenditures on operational assets are accounted for as expenses,while capital expenditures are accounted for as assets.

Question

Quizplus · Accepted Answer

Revenue expenditures on operational assets are considered to be expenses and are recorded in the income statement as expenses in the period in which they are incurred. On the other hand, capital expenditures are expenditures made to acquire, enhance or expand operational assets and are capitalized as assets on the balance sheet.

Revenue Expenditures on Operational Assets Are Accounted for as Expenses,while