Which of the Following Independent Checks Would Be Part of the Internal

question 86

Multiple Choice

Which of the following independent checks would be part of the internal controls for fixed assets?

• A)Comparing actual fixed asset expenditures with the capital budget.
• B)Periodic counts of fixed assets should be made by someone not otherwise responsible for fixed asset related activities.
• C)Physical counts should be reconciled with the accounting records.
• D)Book value of the assets should be compared to the insurance records.

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Definitions:

Dependent Variable

A variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.

Independent Variable

Variables in a study that are presumed to influence or determine the dependent variable, essentially the cause in a cause-and-effect relationship.

Least Squares Estimate

A method of estimating the parameters of a linear regression line by minimizing the sum of the squares of the differences between the observed and predicted values.

Y-intercept

The point where a line crosses the Y-axis of a graph, indicating the value of the dependent variable when the independent variable is zero.