Expenditures That Increase the Efficiency of an Asset or Extend

question 78

Multiple Choice

Expenditures that increase the efficiency of an asset or extend its useful life are referred to as:

• A) capital expenditures
• B) ordinary repairs
• C) immediate expenses
• D) equity expenditures

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Definitions:

Fees

Payments made to professionals or organizations in exchange for their services.

Revenue Streams

Various sources of income that a business receives from its normal business operations or other investments.

Bicycle Shop

A retail business specializing in the sale of bicycles, bicycle parts, and accessories, often offering repair services as well.

Accessories

Supplementary items or external additions that complement the main product offering or enhance its usability or aesthetics.