Normal repair and maintenance of an asset is an example of what?
a. Revenue expenditure
b. Capital expenditure
c. An expenditure that will be depreciated
d. An expenditure that should be avoided
Revenue Expenditure:
The expenditure which does not provide any increment in the benefit after it is incurred in the future to the company is known as revenue expenditure.
To select:
The correct option explaining the example of the expenditure.
The revenue expenditure is the one which does not give any future benefits to the company and it includes the normal repair and maintenance of asset as normal repair does not going to provide any benefit in the future. Hence, the option (a) is correct.
The capital expenditure is the one which is capitalized which means it is for long term and going to provide future economic benefits to the business. Hence, the option (b) is not correct...
Corporate Financial Accounting
Financial & Managerial Accounting
Accounting Information Systems
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Principles of Microeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
Fundamentals of Financial Management (MindTap Course List)
Principles of Economics (MindTap Course List)
Foundations of Business (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Financial And Managerial Accounting
Database Systems: Design, Implementation, & Management
Principles of Information Security (MindTap Course List)
Fundamentals of Information Systems
Database Systems: Design, Implementation, & Management
A Guide to SQL
Fundamentals of Information Systems
Principles of Information Systems (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Management Of Information Security
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Principles of Geotechnical Engineering (MindTap Course List)
EBK ELECTRICAL WIRING RESIDENTIAL
Solid Waste Engineering
Electric Motor Control
International Edition---engineering Mechanics: Statics, 4th Edition
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Steel Design (Activate Learning with these NEW titles from Engineering!)
Automotive Technology
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Structural Analysis
Network+ Guide to Networks (MindTap Course List)