Which of the Following Is an Accurate Statement Regarding Assets

question 36

Multiple Choice

Which of the following is an accurate statement regarding assets and fraud risk?

• A) Companies will often capitalize repairs as fixed assets.
• B) Since fixed assets are often large, there is little theft of fixed assets.
• C) Intangible assets are recorded at cost and valuation issues therefore are not a fraud risk.
• D) Since companies have few fixed assets, there is no need for them to be periodically inventoried.

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Definitions:

Positive Economics

The branch of economics that focuses on factual and cause-and-effect relationships, avoiding value judgments about what ought to be.

Prescriptions

Authorized orders for medication given by a licensed healthcare professional, allowing a patient to be provided medicine.

Factor Of Production

Resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and sometimes entrepreneurship.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility and enhance plant growth.