The fixed asset system is similar to the expenditure cycle except
A)fixed asset transactions are non-routine and require special authorization and controls
B)fixed assets are capitalized, not expensed
C)both a and b
D)none of the above

Question

Quizplus · Accepted Answer

Both options A and B are correct statements about the fixed asset system. Fixed asset transactions are typically non-routine and require special authorization and controls due to their significant value and long-term use in the business. Additionally, fixed assets are not expensed but rather capitalized and depreciated over their useful lives.

The Fixed Asset System Is Similar to the Expenditure Cycle