Which transaction is not processed in the fixed asset system?
A)purchase of building
B)improvement of equipment
C)purchase of raw materials
D)sale of company van

Question

Quizplus · Accepted Answer

The fixed asset system is designed to track and manage long-term assets such as buildings, machinery, and equipment. The purchase of a building and improvement of equipment are both transactions that would be processed in the fixed asset system. However, the purchase of raw materials would not be considered a fixed asset transaction, as raw materials are typically classified as inventory. Similarly, the sale of a company van would not be considered a fixed asset transaction, as it would involve the disposal of an existing asset rather than the acquisition or improvement of a new one. Therefore, the best choice is C, purchase of raw materials.

Which Transaction Is Not Processed in the Fixed Asset System