Asked by Sarah Wilkerson on Jun 27, 2024
Verified
Capital expenditures are costs that improve a fixed asset or extend its useful life.
Extend Its Useful Life
The process of prolonging the period over which an asset can productively be used, often through maintenance or improvements.
- Comprehend the vital aspects and importance of capital and revenue expenditures.
- Understand the distinction between ordinary maintenance costs and expenditures on improvements.
Verified Answer
PR
prachi rasalJun 28, 2024
Final Answer :
True
Explanation :
Capital expenditures are expenses incurred to acquire, upgrade or improve fixed assets such as buildings, equipment or land. These expenditures are expected to benefit the company over a long period of time and increase the value or productivity of the fixed asset.
Learning Objectives
- Comprehend the vital aspects and importance of capital and revenue expenditures.
- Understand the distinction between ordinary maintenance costs and expenditures on improvements.
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