Question

Revenue expenditures: Multiple Choice Are known as balance sheet expenditures because they relate to plant assets. Extend the asset's useful life. Substantially benefit future periods. Are debited to asset accounts when incurred. Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities.

Answer 1

Answer:

Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities.

Explanation:

Basically, expenditures are of two types namely; Revenue expenditure and Capital expenditure.

While capital expenditure are cost that extend the useful life of an existing asset or the cost of the asset itself with expected cash from the use flowing to the entity for more than a year, revenue expenditures are costs that will be an expense in the accounting period the expenditure was made.

Hence revenue expenditure are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities.