Revenue Expenditures Extend The Asset S Useful Life

Are known as balance sheet expenditures because they relate to plant assets.

Revenue expenditures extend the asset s useful life. Multiple choice are revenue expenditures. When plant assets are sold. Are additional costs of plant assets that do not materially increase the asset s life or its productive capabilities 2. Only gains are recorded.

Regardless of how these expenditures are described they either extend the asset s useful life or increase the quantity or quality of its output. Extend the asset s useful life. Expenditures that extend the useful life of a plant asset without improving its quantity or quality are accounted for. Are credited to accumulated depreciation.

These expenditures are depreciated along with the assigned fixed asset. C are credited to accumulated depreciation. Multiple choice are additional costs of plant assets that do not materially increase the asset s life or its productive capabilities. Are additional costs of plants assets that do not materially increase the asset s life.

Substantially benefit future periods 5. Are known as balance sheet expenditures 3. Are credited to accumulated depreciation. Are debited to asset accounts when incurred.

Substantially benefit future periods. Capital expenditures are assigned to assets that are expected to have a useful life of more than one year. Accounting for these expenditures is often accomplished by debiting the asset s accumulated depreciation account or in the case of an addition debiting the asset account itself. B are revenue expenditures.

By debiting accumulated depreciation. Are expensed when incurred. Accounting for the increase in the useful life of a fixed asset when an entity purchases fixed assets e g buildings machinery equipment the management has to estimate the useful life and salvage value of the fixed assets in order to calculate the depreciation expense. Extraordinary repairs are expenditures extending the asset s useful life beyond its original estimate and are capital expenditures because they benefit future periods.

Only losses are recorded. Extend the useful life of an asset beyond its original estimate. Are additional costs of plants assets that do not materially increase the asset s life. By debiting the asset account.

True plant assets refer to nonphysical assets that are used in the operations of a business. Extend the useful life of an asset beyond its original estimate. Are debited to asset accounts.