Which of the Following Is Not a Typical Internal Control

question 43

Multiple Choice

Which of the following is not a typical internal control over long-lived assets?

• A)Reconcile physical asset inventory with the property ledger.
• B)Periodically reassess the appropriateness of depletion categories.
• C)Identify obsolete or scrapped equipment and write it down to scrap value.
• D)Periodically review management strategy and systematically assess the impairment of assets.

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Definitions:

Cost of Equity Capital

The return that investors expect for investing in a company's equity, essentially the cost of raising equity capital for the firm.

Equity Capital

Funds raised by a company through the sale of common or preferred stock to investors.

Bankruptcy

A legal process through which individuals or businesses unable to meet their outstanding debts seek relief from some or all of their liabilities.

Legal Proceeding

A series of steps taken to resolve a legal issue, including lawsuits, hearings, and other actions involving the judicial system.