Improvements are
A) revenue expenditures.
B) debited to an appropriate asset account when they increase useful life.
C) debited to accumulated depreciation when they do not increase useful life.
D) debited to an appropriate expense account when they do not increase useful life.

Question

Quizplus · Accepted Answer

Improvements are capitalized when they increase the useful life or efficiency of an asset. They are deemed to increase the useful life of an asset and are debited to an appropriate asset account with a corresponding credit to cash or accounts payable. This capitalization is done to accurately reflect the increased value of the asset, and the cost of the improvement cannot be expensed in the current period.

Improvements Are