Which of the following is representative of safeguarding assets?
A) attaching electronic sensors to merchandise inventory
B) reducing expenses to increase operating profit
C) increasing operating profit to increase net income
D) allowing company accountants to handle cash

Question

Quizplus · Accepted Answer

Attaching electronic sensors to merchandise inventory is a measure to safeguard assets from theft or damage.

Answer: D 
 Allowing company accountants to handle cash is not a measure of safeguarding assets. It is a control measure for cash management to ensure appropriate handling and record-keeping but has no direct impact on safeguarding assets.

Therefore, the best choice is A.

Which of the Following Is Representative of Safeguarding Assets