A Characteristic of Capital Expenditures Is That the Expenditures Occur

question 88

True/False

A characteristic of capital expenditures is that the expenditures occur frequently during the period of ownership.

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Definitions:

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and determines how revenue is accounted for.

Revenue Account

An account that tracks the income generated from a company's primary operations.

Matching Principle

An accounting concept that expenses should be recorded in the same period as the revenues they helped to generate.

Revenues

The total amount of money generated by the sale of goods or services related to a company's primary operations.