Question

expenditures operating assets after the acquisition must be classified as either revenue expenditures (called repairs and maintenance expense ) or capitalor capital expenditures. these two terms mean that

Two of the other answers are correct

Revenue expenditures increase the appropriate asset accounts

Capital expenditures benefit one or more future

Revenue expenditures benefit only the current.

Answer 1

Revenue expenditures increase the appropriate asset accounts - Incorrect

Capital expenditures benefit one or more future - Correct

Revenue expenditures benefit only the current.  - Correct

Capital expenditure represents the investment of capital to expand its business and generate extra gain from it. Its a long term in nature

While Revenue Expenditure represents expenses that to meet ongoing operational costs nedded for business and its short term in nature