Question

Revenue expenditures

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

Answer 1

Answer A

Step-by-step explanation:

Revenue expenditures are the expenditures during period in which the asset has been put into its usage. They are often discussed in the context of fixed assets. For instance if a company installs new equipment and has monthly costs of its maintenance, these costs are revenue expenditures. Therefore, they only present additional costs that do not necessarily increase asset's life.