Changes That Make a Property More Valuable, Such as Painting

question 83

Multiple Choice

Changes that make a property more valuable, such as painting, adding shelves, or new lighting are known as ______.

• A) leasehold improvements
• B) capital improvements
• C) asset improvements
• D) deductible expenses

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Definitions:

Profit Margin

A financial ratio that shows the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a business.

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.

Normal Balance

The side (debit or credit) of an account that is expected to have a positive balance.

Subtraction

A basic mathematical operation representing the difference between numbers or quantities.