To Achieve Effective Internal Accounting Control Over Fixed Asset Additions

Multiple Choice

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.