Expenditures That Add to the Utility of Fixed Assets for More

question 70

Multiple Choice

Expenditures that add to the utility of fixed assets for more than one accounting period are

• A) committed expenditures
• B) revenue expenditures
• C) utility expenditures
• D) capital expenditures

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Definitions:

Expenses Paid

Refers to the outflow of cash or other valuable assets from a person or company to another entity in exchange for goods or services.

Assets

Resources owned or controlled by a business from which future economic benefits are expected.

Salaries Expense

The total amount spent by a business on salaries for its employees during a specific period, typically reported on the income statement.

Service Fees Earned

Income recognized by a company for services it has provided to clients.