Definition
An expenditure that improves an asset beyond its original condition or extends its useful life. Gets added to the asset's cost (capitalized) rather than expensed immediately. Example: replacing a roof adds years to a building's life.
An expenditure that improves an asset beyond its original condition or extends its useful life. Gets added to the asset's cost (capitalized) rather than expensed immediately. Example: replacing a roof adds years to a building's life.
Explore our free lessons and practice labs to master accounting concepts.