An Improvement Made to a Machine Increased Its Fair Value

question 53

Multiple Choice

An improvement made to a machine increased its fair value and its production capacity. The cost of the improvement should be debited to ________.

• A) expense
• B) accumulated depreciation
• C) equipment
• D) intangible assets

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Definitions:

Criteria For Validity

The standards or benchmarks that must be met to determine the accuracy, reliability, and legitimacy of a study, research findings, or argument.

External

Originating from or situated outside of something or someone, often influencing or affecting it from the outside.

Operationalization

The process of defining a fuzzy concept so as to make the concept measurable and to understand it in terms of empirical observations.