Additions and improvements are generally

Name: Additions and improvements are generally
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

Additions and improvements are considered capital expenditures that increase the value or useful life of an asset. Therefore, they are debited to an appropriate asset account rather than an expense account. These expenditures are capitalized because they provide long-term benefits to the business rather than just short-term benefits, such as repairing or maintaining an asset.

Additions and Improvements Are Generally