Auditors Verify and Emphasize Current Additions of Equipment

question 116

Multiple Choice

Auditors verify and emphasize current additions of equipment. Which of the following is not a reason for this verification and emphasis?

• A) The amount of any given acquisition is often material.
• B) The equipment is likely to be kept and maintained in the accounting records for several years.
• C) There are usually fewer current period acquisitions of equipment, especially large equipment used in manufacturing.
• D) The balance carried forward in the equipment account from the previous year is important.

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Definitions:

Yellow Bone Marrow

A type of bone marrow composed mainly of fat cells, found in the central cavities of long bones.

Red Bone Marrow

The type of bone marrow that produces blood cells, including red blood cells, white blood cells, and platelets.

Proximal Epiphyses

The end parts of a long bone that are closest to the body's center, involved in growth and development.

Red Bone Marrow

A tissue found within bones that produces new blood cells, including red blood cells, white blood cells, and platelets.