Which of the Following Constitutes a Control Weakness Related to Factory

question 39

Multiple Choice

Which of the following constitutes a control weakness related to factory equipment?

• A) A policy requiring all purchases of factory equipment to be made by the department in need of the equipment.
• B) Checks issued in payment of purchases of equipment are not signed by the controller.
• C) Factory equipment replacements are generally made when estimated useful lives, as indicated in depreciation schedules, have expired.
• D) Proceeds from sales of fully depreciated equipment are credited to other income.