ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 97
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.