Controls over the acquisition and recording of insurance are a part of which of the following transaction cycles?
A)Inventory and warehousing cycle
B)Capitalization cycle
C)Treasury cycle
D)Acquisition and payment cycle

Question

Quizplus · Accepted Answer

Controls over the acquisition and recording of insurance are a part of the Acquisition and Payment Cycle. This cycle includes the acquisition of goods and services, expense recognition, and payment processing. Insurance is considered an expense that needs to be acquired and recorded appropriately. Therefore, the Acquisition and Payment Cycle is the most appropriate cycle for this transaction.

Controls Over the Acquisition and Recording of Insurance Are a Part