Almost all companies need physical controls over their assets to prevent loss. Which of the following is not an example of such a control?
A) perpetual inventory master files
B) segregated, limited-access storage areas
C) custody of assets assigned to specific responsible individuals
D) approved prenumbered documents for authorizing movement of inventory

Question

Quizplus · Accepted Answer

Perpetual inventory master files are a record-keeping control method, but they do not physically control assets to prevent loss. Choices B, C, and D all involve physical controls, such as limiting access to storage areas or assigning custody and tracking movement of inventory through approved documents.

Almost All Companies Need Physical Controls Over Their Assets to Prevent