Why Is a Physical Inventory of Existing Fixed Assets Carried

question 16

Multiple Choice

Why is a physical inventory of existing fixed assets carried out on a regular basis?

• A) To check that the assets are used in more than one period.
• B) To check that the assets do physically exist.
• C) To check that the assets are properly depreciated.
• D) None of these.

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Definitions:

Medium-Sized

Referring to something that falls approximately in the middle of a scale or range in terms of size or capacity.

Informational Influence

The change in opinions or behavior that occurs when an individual conforms to what they believe to be the correct response in a specific context, often based on the information provided by others.

Ambiguous Situations

Scenarios or events that lack clear context or guidelines, leading to uncertainty in perception or decision-making.

Pluralistic Ignorance

A psychological state where individuals wrongly believe their thoughts, feelings, or behaviors are different from those of the majority, often leading to conformity with perceived norms.