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.

Question

Quizplus · Accepted Answer

Improvements that do not increase the useful life of an asset are debited to an appropriate asset account when they do not increase useful life. This is because they improve the quality, efficiency or capacity of the asset, but do not prolong its useful life. Therefore, they are treated as capital expenditures rather than revenue expenditures.

Improvements Are