If a New Cost Is Incurred Related to an Asset

question 53

True/False

If a new cost is incurred related to an asset that is considered to enhance that, either by extending the useful life or increasing the efficiency, the fixed asset accountant must make sure the appropriate adjustments are made to the fixed asset subsidiary ledger.

---

Definitions:

Arbitrator

A neutral third party who resolves disputes between two or more parties outside of the court system, usually in a binding decision.

Mediator

A neutral third party who assists in negotiating and reaching a settlement in a dispute or negotiation.

Collective Bargaining

A process of negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions.

Labor Union Membership

The status of being a member of an organization that represents workers' interests to employers, including negotiations for better wages and working conditions.