Which of the Following Is False with Regard to Fixed

question 19

Multiple Choice

Which of the following is false with regard to fixed asset processes

• A)Often fixed assets require a large outlay of cash and companies should have in place special processing for expenditures that exceed a given dollar limit.
• B)A capital budget is a document that outlines all fixed assets that are budgeted to be purchased.
• C)Fixed assets require recording in both the general ledger as well as a subsidiary ledger
• D)A capital budget is a document that outlines the capital that is to be rased for fixed assets that are budgeted to be purchased.

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Definitions:

Amortized

The process of gradually reducing a debt through regular payments over a specified period of time, typically involving both principal and interest.

Intangible Asset

An asset that lacks physical substance and is identifiable as a non-monetary asset without physical substance.

Amortization

The process of gradually paying off debt or spreading the cost of an intangible asset over its useful life.

Depletion Expense

The allocation of the cost of natural resources over the period they are consumed or sold.