An expenditure that improves the quality of service provided by a plant asset is added to the balance in the asset account.

Question

Quizplus · Accepted Answer

An expenditure that improves the quality of service provided by a plant asset is considered a capital expenditure and is added to the balance in the asset account. This increases the asset's value on the balance sheet and is not recorded as an expense in the income statement.

An Expenditure That Improves the Quality of Service Provided by a Plant