Select the True Statement

question 9

Multiple Choice

Select the true statement:

• A)Revenue expenditure is added to the cost of an asset and depreciated
• B)Capital expenditure includes costs of repairs after the asset is installed and first used
• C)Revenue expenditure provides benefits over several accounting periods
• D)Capital expenditure includes expenses to get the asset into location and ready for use

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Gourmet Cupcake

A high-quality, often elaborately decorated cupcake that is made with premium ingredients and designed to cater to sophisticated palates.

Weekly Wages

Weekly wages refer to the total amount of money earned by an employee within a week for their labor or services.

Materials

The tangible physical substances used in the production of goods or the execution of services and projects.