Betterments are:

Question

Betterments are:

Quizplus · Accepted Answer

Betterments are expenditures that make a plant asset more efficient or productive. Unlike ordinary repairs, they add value to the asset and increase its usefulness, efficiency, or capacity. They are capitalized and added to the cost of the asset, as they extend its useful life or improve its output, quality, or performance. Therefore, betterments are not revenue expenditures (choice A), are not charged against the asset account (choice C), and are not the same as ordinary repairs (choice D). However, betterments do not always increase an asset's life (choice E), as they may also enhance other aspects of the asset's performance or quality.

Betterments Are