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Cost of the Improvement in Financial Statements

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1. Accrued liabilities are disclosed in financial statements by:

a. Showing the amoutn among the liabilities but not extending it to the liability total
b. Appropriately classifying them as regular liabilities in the balance sheet
c. A footnote to the statements
d. An appropriation of retained earnings

2. An improvement made to a machine increased its fair market value and its production capaciity by 25% without extending the machine's useful life. The cost of the improvement should be:

a. Capitalized in the machine account
b. Expensed
c. Allocated between accumulated depreciation and the machine account
d. Debited to accumulated deprecitation

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Response discusses the cost of the improvement

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1. Accrued liabilities are disclosed in financial statements by:

b. Appropriately classifying them as regular liabilities in the balance sheet ...

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