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14. Improvements are A) revenue expenditures. B) debited to an appropriate asset

ID: 2453683 • Letter: 1

Question

14.

Improvements are

A)

revenue expenditures.

B)

debited to an appropriate asset account when they increase useful life.

C)

debited to accumulated depreciation when they do not increase useful life.

D)

debited to an appropriate asset account when they do not increase useful life.

14.

Improvements are

A)

revenue expenditures.

B)

debited to an appropriate asset account when they increase useful life.

C)

debited to accumulated depreciation when they do not increase useful life.

D)

debited to an appropriate asset account when they do not increase useful life.

Explanation / Answer

When by incurring some expenditure, we increase the useful life of an asset then it is termed as Improvement. Hence, Improvements are debited to an appropriate asset account when they increase useful lfe.

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