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:

Real Estate Agencies

Businesses that facilitate the buying, selling, leasing, or renting of real estate properties.

Hospitals

Health care institutions providing patient treatment with specialized medical and nursing staff and medical equipment.

Inventory Carrying Cost

The complete expense linked to maintaining stock, encompassing storage, insurance, the decrease in value over time, and the cost of missed opportunities.

Amusement Park

A recreational venue featuring rides, games, and other entertainment attractions designed to amuse visitors.