Expenditures for Changing Oil in a Machine or Repainting a Car

question 130

Multiple Choice

Expenditures for changing oil in a machine or repainting a car would be:

• A) added to the cost of the asset.
• B) added as a capital expenditure.
• C) charged to an expense account.
• D) added as a betterment.

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Definitions:

Increases Assets

Transactions or events that enhance the economic resources controlled by a business.

Purchase Requisition

An internal document used within an organization to request authorization for a purchase before a purchase order is issued.

Purchase Order

An official document issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future.