A company expanded its manufacturing facility by adding an additional 15,000 square feet to the building.This is an example of a(n):

Question

Quizplus · Accepted Answer

An addition refers to an improvement or extension made to a building or property that increases its size or value. In this case, the company added 15,000 square feet to the manufacturing facility, which qualifies as an addition. A betterment refers to an improvement made to a property that increases its value or extends its useful life beyond its original design specs. An extraordinary repair involves unexpected or unforeseeable repairs needed to bring a property back to its original condition, while a revenue expenditure refers to a cost incurred in the normal course of business that is necessary to generate revenue.

A Company Expanded Its Manufacturing Facility by Adding an Additional