Final answer:
Asset maintenance entails the upkeep and restoration of assets, which is different from recording depreciation, a means of allocating an asset's cost over time. Physical improvements enhance an asset's value and are capitalized, not immediately expensed. The term 'expensed' may be misleading as improvements are added to an asset's value and then depreciated.
Step-by-step explanation:
The correct relationship between asset maintenance, depreciation charges, and physical improvements is that asset maintenance includes activities that preserve or restore the functioning of an asset, which goes beyond merely recording depreciation charges. In contrast, physical improvements refer to the enhancements made to an asset, which may increase its value, extend its useful life, or improve its functionality. These improvements are generally capitalized, meaning their cost is added to the asset's value on the balance sheet, and then depreciated over the improved asset’s new estimated useful life.
With that in mind, the correct relationship would be most closely related to option B: Asset maintenance includes activities beyond recording depreciation, and physical improvements are always expensed. However, it is pivotal to note that the term 'expensed' can be ambiguous, as it might suggest that the improvements are treated as an expense immediately when in fact they are capitalized and then depreciated. It's important to differentiate between routine maintenance, which is expensed immediately, and improvements, which are capitalized, as they have different accounting treatments.