Betterments are:
A)Expenditures making a plant asset more efficient or productive.
B)Also called ordinary repairs.
C)Always increase an asset's life.
D)Revenue expenditures.
E)Credited against the asset account when incurred.

Question

Quizplus · Accepted Answer

Betterments are expenditures made on a plant asset to improve its efficiency or productivity. Unlike ordinary repairs which are small, recurring expenditures to maintain the asset's existing operating condition, betterments improve its operational capabilities or extend its useful life. Betterments are capitalized and increase the asset's book value.

Betterments Are