Asked by Aleyna Akgun on Jun 05, 2024
Verified
Revenue expenditures are additional costs of property, plant and equipment that materially increase the assets' life or productive capabilities.
Revenue Expenditures
Expenditures that are immediately charged against revenues in the period they are incurred, typically related to the maintenance and repair of assets.
- Familiarize oneself with the constituents and numerical processes involved in the valuation of assets, considering the role of depreciation and the differences between capital and revenue expenditures.
Verified Answer
AM
angelica michelJun 10, 2024
Final Answer :
False
Explanation :
Revenue expenditures are costs incurred to maintain or repair property, plant and equipment in order to keep them operational, but they do not increase the life or productive capabilities of the assets. Examples of revenue expenditures include routine maintenance, repairs, and minor upgrades.
Learning Objectives
- Familiarize oneself with the constituents and numerical processes involved in the valuation of assets, considering the role of depreciation and the differences between capital and revenue expenditures.
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