Expenditures that extend the life of an asset or increase its productive capacity should be expensed.

Name: Expenditures that extend the life of an asset or increase its productive capacity should be expensed.
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Question

Quizplus · Accepted Answer

Expenditures that extend the life of an asset or increase its productive capacity should be capitalized, not expensed. Capitalizing means adding the expenditure to the asset's value on the balance sheet and then depreciating it over its useful life.

Expenditures That Extend the Life of an Asset or Increase