The following items represent common post acquisition expenditures incurred on equipment.
A. An overhaul to increase useful life of the equipment
B. Cost of a muffler to reduce equipment noise
C. Lubrication service
D. Costs of redesign to increase output
Identify which of these items are considered to be betterments.
A) A only
B) A, B, and D
C) A and D
D) A and B

Question

The following items represent common post acquisition expenditures incurred on equipment. 
A. An overhaul to increase useful life of the equipment
B. Cost of a muffler to reduce equipment noise
C. Lubrication service
D. Costs of redesign to increase output
Identify which of these items are considered to be betterments.
A) A only
B) A, B, and D
C) A and D
D) A and B

Quizplus · Accepted Answer

Betterments are expenditures that increase the useful life, efficiency, or capacity of an asset. An overhaul to increase useful life (A) and redesign to increase output (D) are considered betterments.

The Following Items Represent Common Post Acquisition Expenditures Incurred on Equipment