The starting point for the verification of current year acquisitions of property, plant, and equipment is normally:
A) a schedule obtained from the client of all acquisitions recorded in the general ledger during the year.
B) the acquisitions journal.
C) the purchase requisitions file.
D) the property, plant, and equipment account in the general ledger.

Question

Quizplus · Accepted Answer

The schedule obtained from the client of all acquisitions recorded in the general ledger during the year is the best starting point for verifying current year acquisitions of property, plant, and equipment. This schedule will provide a comprehensive list of all assets acquired during the year and can be used to trace to supporting documentation such as purchase orders, invoices, and receipts. The other options (acquisitions journal, purchase requisitions file, and property, plant, and equipment account in the general ledger) may also provide useful information, but the schedule of acquisitions is the most reliable and complete source of information.

The Starting Point for the Verification of Current Year Acquisitions