An expenditure to lengthen the useful life of a company vehicle would require a
A) credit to Company Vehicles.
B) debit to Vehicle Maintenance Expense.
C) credit to Depreciation Expense.
D) debit to Accumulated Depreciation.

Question

Quizplus · Accepted Answer

An expenditure that extends the useful life of an asset is capitalized, meaning it is added to the asset's book value. This is done by debiting Accumulated Depreciation, which reduces the accumulated depreciation and increases the asset's net book value.

An Expenditure to Lengthen the Useful Life of a Company