Which of the Following Is Not a Characteristic of the Fixed

question 12

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:

Signature Card

A form signed by a bank customer that the bank uses to verify signature authenticity on all checks.

Forgeries

Illegal alterations or productions of documents, currency, or other items with the intent to deceive.

Customer's Bank Account

The bank account of a customer, used for transactions between the customer and a company.

Restrictive Endorsement

An endorsement on a check or other financial instrument limiting the way the funds can be used or restricting further endorsement.