To achieve effective internal accounting control over fixed-asset additions, a company should establish procedures that require (a)

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To achieve effective internal accounting control over fixed-asset additions, a company should establish procedures that require

(a) capitalization of the cost of fixed-asset additions in excess of a specific dollar amount.

(b) performance of recurring fixed-asset maintenance work solely by maintenance department employees.

(c) classifying as investments those fixed-asset additions that are not used in the business.

(d) authorization and approval of major fixed-asset additions.

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Related Book For  book-img-for-question

Accounting Information Systems

ISBN: 9780130861771

8th Edition

Authors: George H. Bodnar, William S. Hopwood

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