ACC 304 All Assignments ACC 304 All Assignments | Page 135

16. Costs incurred subsequent to the acquisition of an asset are
capitalized if they provide future benefits.
17. Improvements are often referred to as betterments and involve
the substitution of a better asset for the one currently used.
18. When an ordinary repair occurs, several periods will usually
benefit.
19. Companies always treat gains or losses from an involuntary
conversion as extraordinary items.
20. If a company scraps an asset without any cash recovery, it
recognizes a loss equal to the asset’s book value.
True False Answers—Conceptual
MULTIPLE CHOICE—Conceptual
21.
Plant assets may properly include