11. An expenditure that increases an asset's capacity or efficiency or extends its useful life is a(n): A) capital expenditure. B)expense. C)addition. D)improvement. 12. A capital expenditure is: A)debited to an expense account. B)credited to an expense account. C)debited to an asset account. D)debited to a shareholders' equity account 15.The journal entry to record a major expenditure to upgrade equipment that extends its useful life beyond the original estimate would include a: A)credit to Depreciation Expense. B)debit to Equipment. C)debit to Depreciation Expense. D)debit to Repair Expense.

11. An expenditure that increases an asset's capacity or efficiency or extends its useful life is a(n): A) capital expenditure. B)expense. C)addition. D)improvement. 12. A capital expenditure is: A)debited to an expense account. B)credited to an expense account. C)debited to an asset account. D)debited to a shareholders' equity account 15.The journal entry to record a major expenditure to upgrade equipment that extends its useful life beyond the original estimate would include a: A)credit to Depreciation Expense. B)debit to Equipment. C)debit to Depreciation Expense. D)debit to Repair Expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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