Fred owns a delivery truck. Which of the following costs, associated with the tr

Question

Fred owns a delivery truck. Which of the following costs, associated with the truck will be treated as a revenue expenditure? A) major engine overhaul B) modification for new use C) oil change and lubrication D) addition to storage capacity Fred owns a delivery truck. Which of the following costs, associated with the truck will be treated as a revenue expenditure? A) major engine overhaul B) modification for new use C) oil change and lubrication D) addition to storage capacity A) major engine overhaul B) modification for new use C) oil change and lubrication D) addition to storage capacity

Explanation / Answer

Answer:C) oil change and lubrication

this expense is for normal daily wear and tear of the machine

However A,B,D are used for enhancing the asset value and therefore they are capital expenditure

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