1. Suggest three key procedures involving internal control of property, plant, and equipment that do not relate specifically to accounting records.
2. Suggest three key procedures involving internal control of property, plant, and equipment that relate to accounting records.
3. Generally accepted accounting principles require that all research and development costs be expensed in the year they are incurred. An officer of the company wants to amortize these costs. What can you say to explain why this accounting requirement exists?
4. Assume that you are the accountant at a fabricating plant. One of the vice presidents has asked you why one of the pieces of equipment used in the plant is shown at its original cost in the asset accounts. Respond to the question.
5. Suppose you are on the controller's staff at a large company. You have suggested assigning responsibility for the company's equipment to specific individuals. One supervisor has objected, saying it is a waste of time. Defend your suggestion to the controller and to the supervisor.