The First Part of the Strict Approval Process for High-Dollar

question 62

Multiple Choice

The first part of the strict approval process for high-dollar fixed assets is the investment analysis.Which of the following is part of that analysis?

• A)Capital budget comparison
• B)Review of the proposal
• C)Financial justification
• D)Written requisition

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Definitions:

Unearned Rent

Unearned rent is money received by a landlord for rent that has not yet been earned because the rental period has not occurred. It is recorded as a liability until the period passes.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.