Which of the following types of subsequent expenditures normally is capitalized?
A) Additions.
B) Improvements.
C) Rearrangements.
D) All of these answer choices are normally capitalized.

Question

Quizplus · Accepted Answer

All of the answer choices listed (additions, improvements, and rearrangements) are types of subsequent expenditures that result in an improvement to the asset and therefore increase its value or extend its useful life. As a result, these expenditures are capitalized (recorded as an asset on the balance sheet and depreciated over time) rather than expensed immediately.

Which of the Following Types of Subsequent Expenditures Normally Is