Leasehold improvements usually are classified in a balance sheet as:
A) Property, plant, and equipment.
B) Other long-term assets.
C) Investments.
D) Expenses.

Question

Quizplus · Accepted Answer

Leasehold improvements are enhancements made to leased property, such as buildings or equipment, to make it more suitable for the needs of the tenant. These improvements are capitalized and classified as part of property, plant, and equipment in the balance sheet because they are tangible assets that provide future economic benefits through their use in the business.

Leasehold Improvements Usually Are Classified in a Balance Sheet As