Figuring Out Costs Associated With A Business?
Posted in Interior Shutters on 07. Feb, 2010
XYZ Co. incurred the following costs related to the office building used in operating its sports
supply company:
a.Replaced a broken window.
b.Replaced the roof that had been on the building 23 years.
c.Serviced all the air conditioners before summer started.
d.Replaced the air conditioners with refrigerated air conditioners in the customer
service areas.
e.Added a warehouse to the back of the building.
f.Repainted the interior walls.
g.Installed window shutters on all windows.
Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs
identified as capital expenditures, classify each as an additional or replacement component.
a. capital replacement
b. capital replacement
c. revenue expenditure
d. capital additional
e. capital additional
f. revenue expenditure
g. capital additional