Three major tasks are handled by the Fixed Asset System. What is the purpose of each? What special control issues affect each?
Asset acquisition handles the steps leading to the acquisition of new fixed assets: recognition of need, authorization and approval, possible capital investment analysis, and selection of supplier. Because of the value of fixed assets, special approvals are needed.
Asset maintenance involves adjusting the subsidiary account balances for depreciation, and improvements and tracking location. Control involves accountability by keeping track of the physical location of each asset.
Asset disposal handles the removal of assets from the subsidiary ledger when the asset is taken out of service. This requires special approval and preparation of a disposal report.
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The deep pocket theory represents a misunderstanding whereby shareholders mistakenly believe that they are entitled to recover losses on investments for which the auditor provided an unqualified opinion on the financial statements
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a way you can shorten a too-long speech?
a. Eliminate unnecessary main points. b. Speak quickly. c. Cut redundant examples. d. Tighten your phrasing.
Rivals would find it difficult to challenge Atlas Door in the short run because of
A. high threat of substitution. B. strong customer loyalty. C. low buyer switching costs. D. low barriers to entry.
Which company was used as an example in the textbook to illustrate the concept of close collaboration viewed as a positive forum for innovations and creativity in a high technology or knowledge information industry?
a. Taco Bell b. Subway c. Virginia Highway Patrol d. Apple