Which of the Following Is Not a Characteristic of the Fixed

question 13

Multiple Choice

Which of the following is not a characteristic of the fixed asset system?

• A)Acquisitions are routine transactions requiring general authorization.
• B)Retirements are reported on an authorized disposal report form.
• C)Acquisition cost is allocated over the expected life of the asset.
• D)Transfer of fixed assets among departments is recorded in the fixed asset subsidiary ledger.

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Definitions:

Square Feet

A measurement of area equivalent to a square measuring one foot on each side.

Print Advertising

The process of promoting products or services through printed mediums such as newspapers, magazines, flyers, or billboards.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Allocated

The process of distributing resources or costs among various accounts or departments based on a specific criteria or formula.