Additions and Improvements Are Costs Incurred to Increase the Operating

question 153

Short Answer

Additions and improvements are costs incurred to increase the operating efficiency productive capacity or expected useful life and are referred to as __________________.

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Definitions:

Cumulative

Describes something that increases or accumulates over time, often used in the context of investments or financial statements.

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders as dividends, often linked to the par value of common and preferred stock.

Par Value

A nominal dollar amount assigned to corporate shares, representing the minimum price per share that shares can be issued at.

Stated Value

A value that has been assigned to a corporation's stock that does not have a par value, often used for accounting purposes.