To achieve effective internal accounting control over fixed asset additions, a company should establish procedures that require:
A) authorization and approval of major fixed asset additions.
B) capitalization of the cost of fixed asset additions in excess of a specific dollar amount.
C) classification, as investments, of those fixed asset additions that are not used in the business.
D) performance of recurring fixed asset maintenance work solely by maintenance department employees.

Question

Quizplus · Accepted Answer

Authorization and approval of major fixed asset additions ensure that all acquisitions are necessary, properly budgeted, and aligned with the company's strategic goals, which is a key aspect of internal accounting control.

To Achieve Effective Internal Accounting Control Over Fixed Asset Additions