Expenditures that increase the efficiency of an asset or extend its useful life are referred to as:

Question

Quizplus · Accepted Answer

Capital expenditures are expenditures that are made to improve an asset by increasing its efficiency or extending its useful life. These expenditures are typically larger and more significant than ordinary repairs, and can be capitalized and depreciated over time. Examples of capital expenditures include upgrades to equipment, major renovations to a property, or the purchase of a new building. Ordinary repairs, by contrast, are routine expenditures made to maintain an asset in its current condition, and do not increase its efficiency or extend its life.

Expenditures That Increase the Efficiency of an Asset or Extend