Revenue expenditures are the routine expenses that a company incurs during its normal business operations. These are not meant for long-term benefits and are immediately charged against profits in the same accounting period in which they are incurred.

1. Car wash: This is a revenue expenditure. It is a routine maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

2. Installation of special equipment: This is not a revenue expenditure. It is a capital expenditure because it is likely to improve the performance of the vehicle beyond its current state and provide benefits over a longer period.

3. Dent repair: This is a revenue expenditure. It is a routine repair and maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

4. Engine overhaul: This is not a revenue expenditure. It is a capital expenditure because it extends the life of the vehicle and improves its performance beyond its current state.

5. Oil change: This is a revenue expenditure. It is a routine maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

So, the revenue expenditures related to a company vehicle from the given options are Car wash, Dent repair, and Oil change.

Question

Revenue expenditures are the routine expenses that a company incurs during its normal business operations. These are not meant for long-term benefits and are immediately charged against profits in the same accounting period in which they are incurred.

1. Car wash: This is a revenue expenditure. It is a routine maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

2. Installation of special equipment: This is not a revenue expenditure. It is a capital expenditure because it is likely to improve the performance of the vehicle beyond its current state and provide benefits over a longer period.

3. Dent repair: This is a revenue expenditure. It is a routine repair and maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

4. Engine overhaul: This is not a revenue expenditure. It is a capital expenditure because it extends the life of the vehicle and improves its performance beyond its current state.

5. Oil change: This is a revenue expenditure. It is a routine maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

So, the revenue expenditures related to a company vehicle from the given options are Car wash, Dent repair, and Oil change.

Knowee AI · Accepted Answer

Revenue expenditures are the routine expenses that a company incurs during its normal business operations. These are not meant for long-term benefits and are immediately charged against profits in the same accounting period in which they are incurred.

1. Car wash: This is a revenue expenditure. It is a routine maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

2. Installation of special equipment: This is not a revenue expenditure. It is a capital expenditure because it is likely to improve the performance of the vehicle beyond its current state and provide benefits over a longer period.

3. Dent repair: This is a revenue expenditure. It is a routine repair and maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

4. Engine overhaul: This is not a revenue expenditure. It is a capital expenditure because it extends the life of the vehicle and improves its performance beyond its current state.

5. Oil change: This is a revenue expenditure. It is a routine maintenance expense that does not extend the life of the vehicle or improve its performance beyond its current state.

So, the revenue expenditures related to a company vehicle from the given options are Car wash, Dent repair, and Oil change.

Determine which of the following expenses are considered revenue expenditures related to a company vehicle.Multiple select question.Car washInstallation of special equipmentDent repairEngine overhaulOil change

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