Which of the Following Controls Is Not a Typical Internal

question 84

Multiple Choice

Which of the following controls is not a typical internal control over fixed assets?

• A) Reconcile physical inventory with the property ledger.
• B) Periodically reassess the appropriateness of depletion categories.
• C) Identify obsolete or scrapped equipment and write it down to scrap value.
• D) Periodically review management strategy and systematically assess the impairment of assets.

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Definitions:

Finance Charges

Fees represented as the cost of credit to the borrower, which includes interests and other charges.

Installment Payment Plan

A financial arrangement that allows a buyer to pay for goods or services over a period of time in several smaller payments.

Bankruptcy

The state of being bankrupt, being legally declared unable to pay debts; a petition to a court by an individual who is stating that he or she cannot pay any debt incurred.

Collection Agency Transaction

A financial activity where a collection agency attempts to recover funds owed by an individual or business.