Additions and improvements
A) occur frequently during the ownership of a plant asset.
B) normally involve immaterial expenditures.
C) increase the book value of plant assets when incurred.
D) typically only benefit the current accounting period.

Question

Quizplus · Accepted Answer

Additions and improvements increase the book value of plant assets because they enhance the asset's capacity or extend its useful life, thus capitalizing the expenditure.

Additions and Improvements